John Moved His Office from a Building He Was Renting

question 92

Multiple Choice

John moved his office from a building he was renting downtown to the carriage house he owns in back of his house.How will his profit change?

• A)Implicit costs fall.
• B)Explicit costs remain unchanged while implicit costs rise.
• C)Economic profit must fall.
• D)Explicit costs rise.
• E)Accounting profit will rise.