Which of the following is most likely to be true of economic and accounting profits?
A) Economic profits are less than accounting profits.
B) Accounting profits are less than economic profits.
C) Economic profits plus accounting profits equal zero.
D) Accounting profits minus economic profits equal zero.

Question

Quizplus · Accepted Answer

Economic profits are typically less than accounting profits because economic profits take into account both explicit costs and implicit costs (opportunity costs), whereas accounting profits consider only explicit costs.

Which of the Following Is Most Likely to Be True