False Profit!!

I learned something in Economic class today made me so upset: economic profit. Economic profit is calculated similar to accounting profit except it includes the cost of the decision one chooses to forego (implicit cost or opportunity cost). My question is why would you include the cost of an alternative that you chose to forego? If you choose an option or alternative, be committed to it. Don't tease yourself with what if's and could haves.

Accounting says that profit = revenues - cost. However,
Economic says profit = revenues - implicit cost or opportunity cost

So for example, the profit for the owner of a beer company would be (according to accounting)

Lets say:

$100000 - $30000 = $70000 (per yr)

This is what an economist would say:

Lets say the opportunity cost of owning a beer company is $80000 per

100000 - 30000+80000 = (10000) A LOST!!!

This is just ridiculous to me and makes no sense. It doesn't seem realistic!



This is my opinion. I just learned this concept approximately an hour ago, so I might be wrong. Maybe I haven't grasp it yet. But at this moment in time, I think it is FALSE PROFIT or LOSS!!