Which of the Following Would Explain Why Economic Profit Might

question 180

Multiple Choice

Which of the following would explain why economic profit might be less than accounting profit?

• A)A firm's net income is less than its accounting profit.
• B)A firm has only explicit costs.
• C)A firm's net income is greater than its accounting profit.
• D)A firm has implicit costs as well as explicit costs.

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Definitions:

Gold Trade

The buying, selling, or exchange of gold between entities or individuals, which can involve physical gold or financial instruments based on the price of gold.

Cahokia

An ancient Native American city located near present-day St. Louis, Missouri, known for its massive earthen mounds and significant role in pre-Columbian indigenous culture.

City of the Sun

An ideal and utopian society envisioned by Italian philosopher Tommaso Campanella in his work "La città del Sole" where goods, women, and children are held in common, reflecting 16th-century communist ideals.