Suppose That for a Particular Business There Are No Implicit

question 242

Multiple Choice

Suppose that for a particular business there are no implicit 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:

Social Loafing

The occurrence in which people put in less effort towards reaching a goal when part of a group than they do when working individually.

Ringelmann Effect

The Ringelmann Effect describes the phenomenon where individuals in a group become less productive as the size of the group increases.

Social Loafing

The behavior of individuals demonstrating decreased effort in goal achievement while in a group setting versus when working independently.

Ringelmann Effect

Describes the tendency for individual members of a group to become increasingly less productive as the size of the group increases.