If a Firm Has Implicit Costs as Well as Explicit

question 21

Multiple Choice

If a firm has implicit costs as well as explicit costs

• A)accounting profits are greater than economic profits.
• B)economic profits will always be greater than accounting profits.
• C)accounting profits will be equal to economic profits.
• D)the firm has no economic profits.

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Definitions:

Local Norms

Social rules and guidelines that are understood and followed by members of a community or society, specifically within a certain locality.

Formal Control Agencies

Organizations or bodies established by a government or society to enforce laws, norms, and regulations, such as police or regulatory agencies.

Police

Law enforcement officers whose duty is to maintain public order, protect citizens, and enforce laws.

Criminal Record

A documented history of an individual's criminal convictions and offenses.