People who hire lawyers to recover
damages in civil suits usually pay them on a commission
basis. This method of payment helps overcome
problem of the commons.
paradox of value.
problem of measuring utility.
How does the economist's definition of
profit differ from an accountant's definition of
They differ in terminology, but the
concepts are the same.
Accountants usually only considers
cash outlays as costs while economists consider
opportunity costs as the proper cost concept.
The concept of profit that economists
use can be accurately measured while the concept used
by accountants cannot be.
Economists are concerned with the incentive issues in
the concept of profit while accountants are