Brian Krug

These remarks submitted on 10/15/2000 at 6:29 PM.

E-Mail Address : bkrug@assumption.edu

Remarks -

I strongly agree that economic and accounting profit are vital in determining the companies maximum profits earned. For instance,
in determining a companies profits, you need to take in consideration the amount of opportunity costs used when analyzing a firm.
In addition, economomist views a firm by the economic profit, implicit costs, and explicit costs. The differences between implicit
and explicit costs is implicit is the input costs that require an outlay of money by the firm. Explicit costs is the input costs that
require an outlay of money on a firm. I personally believe that economic profit and accounting profits are closely related and have equal
parts in determining the revenue in a company. The only difference is accounting profit determines the revenue through Total Revenue - Total
Explicit costs, while economic profits determine revenue by Total Revenue - Total Implicit and Explicit Costs.
I felt that the book could of explained accounting and economic profits a little more extensive. I felt understanding these two terms was a little
confusing becuase I felt the text didnt provide enough information in describing these two concepts. But, on the other hand, as I read more closely
I got a understanding of what I believed was the reasoning behind both concepts through classwork and reading the text.

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