On a Bar Graph Comparing a Firm's Economic Profit with Its

question 283

Multiple Choice

On a bar graph comparing a firm's economic profit with its accounting profit, it will always be true that

• A) explicit costs will be greater in the column representing accounting profit.
• B) explicit costs will be greater in the column representing economic profit.
• C) total revenue will be greater in the column depicting accounting profit.
• D) opportunity costs will be missing from the column depicting accounting profit.

---

Definitions:

Contract Law

A body of law regulating the formation, performance, and enforcement of contracts between parties.

Repudiates

To reject or deny the validity or authority of something, often associated with contracts or obligations.

Lost Profits

Potential revenue that a business did not earn, often due to breaches of contract, infringement, or other wrongful acts.

Inventory

The complete list of items such as merchandise, raw materials, and products that are in stock within a business's possession.