Final answer:
Subtracting implicit costs from accounting profit yields economic profit. Accounting profit is a measure of monetary transactions, while economic profit includes both explicit and implicit costs, such as opportunity costs.
Step-by-step explanation:
When subtracting implicit costs from accounting profit, the result is economic profit. Accounting profit is calculated as total revenues minus explicit costs, which focuses on actual monetary transactions. On the other hand, economic profit considers both explicit costs (monetary transactions) and implicit costs (opportunity costs of a company's resources), providing a more comprehensive view of a company's profitability. For example, if a company has an accounting profit of $1,000,000 and explicit costs of $950,000, then its accounting profit would be $50,000. If the implicit costs are $30,000, the economic profit is reduced further to $20,000.