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Businesses Employ Resources to Use in the Production and Sale

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Businesses employ resources to use in the production and sale of a good or service.Accounting profit is typically used as a way of evaluating the success of a business, but economists argue that economic profit is more relevant to determining whether a business should continue to operate.What is the difference between these two measures of profit? Explain why accounting profit is usually greater than economic profit.


Definitions:

Marital Satisfaction

The degree of contentment and fulfillment individuals feel within their marriage or long-term romantic relationship.

Perceived Equity

The feeling or perception that the balance between one's inputs and outcomes in a relationship or situation is fair.

Household Duties

Tasks and responsibilities associated with the maintenance and functioning of a home, such as cleaning and cooking.

Committed Relationships

Long-term relationships where partners are emotionally and usually legally bound to each other.

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