The Difference Between Zero Accounting Profit and Zero Economic Profit

question 171

Multiple Choice

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

• A) economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero accounting profit.
• B) economists do not include opportunity cost in zero economic profit, while accountants do include opportunity cost in zero accounting profit.
• C) economists include opportunity cost in zero accounting profit, while accountants do not include opportunity cost in zero economic profit.
• D) economists do not include opportunity cost in zero accounting profit, while accountants do include opportunity cost in zero economic profit.

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Definitions:

Appreciative Inquiry

A management approach that focuses on identifying and building on an organization's strengths and successes to improve performance.

Unfreezing

The initial stage in the process of change, where existing beliefs, values, or behaviors are questioned or deconstructed to facilitate the adoption of new attitudes or practices.

Change Effort

The intentional actions taken to alter an individual's behavior or an organization's structure, culture, or processes.

Appreciative Inquiry

A management approach that focuses on identifying and leveraging an organization's strengths, rather than focusing on its weaknesses.