Economists consider both explicit costs and implicit costs when measuring economic profit.The reason they consider implicit costs is that
A) they are more conservative than accountants,who consider only accounting costs.
B) most businesses forget to pay their implicit costs.
C) a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
D) implicit costs are typically far larger than explicit costs.
E) implicit costs include expenses like taxes and fees to the government.
Correct Answer:
Verified
Q2: The out-of-pocket expenses incurred in producing a
Q3: Which of the following statements is FALSE?
A)
Q4: Which of the following statements is true?
A)
Q5: Accountants consider only explicit costs when measuring
Q6: If a firm has total costs of
Q8: What needs to be done to ensure
Q9: Total revenue minus total cost is equal
Q10: Implicit costs can be difficult to measure
Q11: Lisette is the owner of a bakery
Q12: Implicit costs are
A) the opportunity cost of
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