All of the following are ways a business can earn economic profits except
A)Discover new products.
B)Maximize implicit costs but not explicit costs.
C)Take above-average risks.
D)Find new and better methods of production.

Question

Quizplus · Accepted Answer

Economic profits are earned when a business earns more revenue than both implicit and explicit costs combined. Maximizing only implicit costs but not explicit costs will not lead to economic profits, as explicit costs must also be minimized in order to earn such profits. The other answer choices (A, C, and D) are all ways a business can earn economic profits.

All of the Following Are Ways a Business Can Earn