Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A)Assuming that explicit costs are positive, economic profit is greater than accounting profit.
• B)Assuming that implicit costs are positive, accounting profit is greater than economic profit.
• C)Assuming that explicit costs are positive, accounting profit is equal to economic profit.
• D)Assuming that implicit costs are positive, economic profit is positive.

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Definitions:

Demand for Marijuana

The desire for and quantity of marijuana that consumers are willing and able to purchase at various prices.

Market

Any institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of a particular good or service.

Exchange of Goods

The act of giving one thing and receiving another, especially of the same type or value, commonly referred to in the context of trade or barter.

Buyers and Sellers

The participants in a market who respectively purchase and offer goods or services for trade.