Which of the Following Statements Is FALSE

question 400

Multiple Choice

Which of the following statements is FALSE?

• A) A correct measure of a firm's economic cost includes both accounting and opportunity cost.
• B) The accounting profit earned by a firm will always be less than its economic profit.
• C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources.
• D) The accounting profit of a firm is its total revenue minus total explicit costs.

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Definitions:

Linear Relationships

A relationship between two variables where the change in one variable is directly proportional to the change in another.

Nonlinear Relationships

Nonlinear relationships describe scenarios in data where the change in outcome variable does not correspond to a constant change in predictor variable.

Scatterplot Form

A graphical representation of data using Cartesian coordinates to display values of two variables for a set of data.

Clusters

Groups of objects or data points that are similar to each other within the same group but dissimilar to objects in other groups.