Which of the Following Would Explain Why Accounting Profit Might

question 53

Multiple Choice

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

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

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Definitions:

Primary Germ Layers

The three initial layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo from which all bodily tissues and organs develop.

Digestive Organs

Organs involved in the digestion process, including the mouth, esophagus, stomach, liver, gallbladder, pancreas, intestines, rectum, and anus.

Respiratory Organs

Organs involved in the process of breathing, including the nose, throat, larynx, trachea, bronchi, and lungs.

Extraembryonic Membrane

Membranes that support the development of the embryo, such as the amnion and chorion.