People who hire lawyers to recover damages in civil suits usually pay them on a commission basis. This method of payment helps overcome the:

principal-agent problem.
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 profit?

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 not.

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