When a Business Has Implicit Costs

question 377

Multiple Choice

When a business has implicit costs

• A) economic profits are greater than accounting profits.
• B) economic and accounting profits are the same.
• C) economic profits are less than accounting profits.
• D) economic costs are the same as accounting costs.

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Definitions:

Transmissible Disease

An infectious disease that can be spread from one individual to another, either directly or via an intermediary such as a vector.

Living Organism

Any entity that exhibits the characteristics of life, such as growth, reproduction, and the capacity for metabolic activity.

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, suggesting action to avoid or diminish harm.

Scientific Research

The systematic investigation and study of materials, sources, etc., in order to establish facts and reach new conclusions.