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:

Major Organic Product

The primary product of an organic reaction, typically forming in the greatest amount compared to any other products.

Transformation

A thorough or dramatic change in form or appearance, commonly used to describe a significant change in a chemical substance or entity.

Reagents

Substances or compounds added to a system to bring about a chemical reaction or test for the presence of another substance.

Pentanal

An aldehyde with the formula C5H10O, characterized by a distinct odor and used in flavorings and perfumes.