what is economic profit 
economic profit measures how a company is faring compared with its competition it uses both explicit and implicit costs a company can have a positive accounting profit while maintaining a zero economic profit the bottom lineexplicit costs are the out of pocket expenses incurred by a business in the production of goods or services these costs are easily identifiable and can be directly attributed to a specific activity or business function by accurately tracking explicit costs businesses can make informed decisions about pricing production and resource allocation overall businesses should carefully monitor their explicit costs to ensure that they are managing their resources effectively and making sound financial decisions 