The Difference Between Zero Accounting Profit and Zero Economic Profit

question 208

Multiple Choice

The difference between zero accounting profit and zero economic profit is that

• A)an economic profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm's capital.
• B)an economic profit of zero indicates an unacceptable rate of return because it does not include the opportunity cost of a firm's capital.
• C)an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost.
• D)an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm's capital.

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Definitions:

Outline Group

A feature in software that allows users to manage and organize data or text into collapsible sections.

Status Bar

A graphical control element found at the bottom of applications or documents, displaying information relevant to the current state or context, such as zoom level or cursor position.

Outline Data

The structure and hierarchy of data that has been organized in an outline format, typically showing the relationships between different levels of information.

Group Button

A control element in user interfaces that allows for the collective manipulation of objects or elements, such as aligning or grouping multiple items in a document or presentation.