Suppose That for a Particular Business There Are No Implicit

question 156

Multiple Choice

Suppose that for a particular business there are no implicit opportunity costs.Then

• A) accounting profit will be greater than economic profit.
• B) accounting profit will be the same as economic profit.
• C) accounting profit will be less than economic profit.
• D) the relationship between accounting profit and economic profit cannot be determined without more information.

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Definitions:

Deduction

An amount that is subtracted from an individual's gross income, decreasing the amount of taxable income.

AGI Deduction

Deductions from gross income that occur before calculating the taxable income, specifically affecting the adjusted gross income on a tax return.

Health Insurance

A type of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Self-Employed

This term describes individuals who work for themselves, either by running their own business or as independent contractors, rather than being employed by someone else.