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:

Depression

A mental health disorder characterized by persistently low mood and a lack of interest in activities, affecting day-to-day functioning.

Downsizing

The process of reducing the size of a company's workforce to lower expenses and improve efficiency.

Social Interaction

The process by which individuals act and react to those around them, allowing for the formation of relationships and society.

Solitude

The state of being alone without feeling lonely, often seen as an opportunity for self-reflection or personal growth.