What Is the Relationship Between Accounting Profit and Economic Profit

question 178

Multiple Choice

What is the relationship between accounting profit and economic profit

• A)Accounting profit = Economic profit + Implicit costs
• B)Accounting profit = Economic profit - Implicit costs
• C)Economic profit = Accounting profit + Explicit costs
• D)Economic profit = Accounting profit - Explicit costs

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Definitions:

Erratic

Describing something that is unpredictable or irregular in pattern, movement, or behavior.

Biological Factors

Elements within an organism's biology that influence its behavior, health, and development, including genetics, brain chemistry, and hormone levels.

Unpredictable Environment

A setting or situation where changes and occurrences are random or difficult to anticipate, often causing stress or anxiety.

Mental Disorder

Any behavior or emotional state that causes an individual great suffering, is self-destructive, seriously impairs the person’s ability to work or get along with others, or makes a person unable to control the impulse to endanger others.