Accounting profit is typically
A. greater than economic profit because the former does not take explicit costs into account.
B. smaller than economic profit because the former does not take implicit costs into account.
C. equal to economic profit because explicit costs include all opportunity costs.
D. greater than economic profit because the former does not take implicit costs into account.
Answer: D
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If a 5 percent increase in the price results in a 9 percent increase in quantity supplied, the elasticity of supply is
A) 0.30. B) 0.55. C) 1.20. D) 1.80.
Moving decisions downward into functional areas economizes on information and is efficient because a functional department is by definition expert at a subset of the firm's activities
Indicate whether the statement is true or false