Identify the Truthfulness of the Following Statements

question 55

Multiple Choice

Identify the truthfulness of the following statements.
I. A firm can earn a positive accounting profit but a negative economic profit.
II. Opportunity cost is included in the definition of economic profit but not in the definition of accounting profit.

• A) Both I and II are true.
• B) Both I and II are false.
• C) I is true; II is false.
• D) I is false; II is true.