Which of the Following Statements Is Correct

question 42

Multiple Choice

Which of the following statements is correct?

• A)Economic profit is the difference between total revenue and the full opportunity cost of all the resources used in production.
• B)Economic profit is the difference between total revenue and explicit costs.
• C)Economic profit is generally greater than accounting profit.
• D)Economic profit is the difference between total revenue and implicit costs.

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Definitions:

MPS

Master Production Schedule, a plan for the production of individual final items that breaks down the aggregate plan.

Aggregate Plan

A planning strategy that outlines the overall production activities of a company over a certain period of time to meet forecasted demand.

Master Production Schedule

A detailed plan that outlines exactly what is to be produced, in what quantities, and when, serving as a critical component in manufacturing and supply chain management.