Which of the Following Is Incorrect

question 124

Multiple Choice

Which of the following is incorrect?

• A) Accounting profits generally overstate economic profits.
• B) Accounting profits do not take opportunity cost into account.
• C) Economic costs include not only the accounting costs but also the opportunity costs of the resources used in production.
• D) Managers should only be interested in accounting profits.

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Definitions:

Price Elasticity

The measure of how much the quantity demanded or supplied of a good changes in response to a change in its price. It reflects the sensitivity of consumers or producers to price changes.

Unit Price Elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

Total Revenue

The total revenue a company earns from selling its goods or services before deducting any expenses or costs.

Chocolate

A sweet, usually brown, food preparation of roasted and ground cacao seeds, often flavored, and available as a solid or liquid.