Which of the Following Would Explain Why Accounting Profit Might

question 53

Multiple Choice

Which of the following would explain why accounting profit might be greater than economic profit?

• A)A firm has implicit costs as well as explicit costs.
• B)A firm has only explicit costs.
• C)A firm's net income is greater than its accounting profit.
• D)A firm's net income is less than its accounting profit.

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Definitions:

Superego

In psychoanalytic theory, the component of the mind that represents internalized societal standards of right and wrong.

Fasting

The act of abstaining from all or some kinds of food or drink for a predetermined period, often used for health, religious, or ethical reasons.

Baked Potato

A culinary dish prepared by baking a potato in an oven or over a fire until it is soft inside with a crispy skin.

Collective Unconscious

A concept by Carl Jung referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.