When There Are Implicit Costs of Production

question 82

Multiple Choice

When there are implicit costs of production,

• A)accounting and economic profit are equal
• B)opportunity costs of production are zero
• C)explicit costs of production are small
• D)accounting profit will exceed economic profit
• E)economic profit will exceed accounting profit

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Definitions:

Super Bowl

An annual championship game of the National Football League (NFL), known for being the climax of each NFL season and celebrated with high-profile advertisement and performances.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to improve market awareness and drive consumer behavior.

Mass Production

A manufacturing process that produces large quantities of standardized products using assembly lines or automation technology.

Higher Prices

An increase in the cost of goods or services in the marketplace, often due to factors like inflation, supply and demand, or production costs.