Which of the following statements is true concerning economic profits?

Question

Quizplus · Accepted Answer

Economic profits are revenue over and above all costs, including implicit costs such as opportunity costs. Therefore, option D is the only statement that accurately defines economic profits. Option A and C are inaccurate because economic profits can be negative or zero. Option B is incorrect because profits as measured by an accountant only consider explicit costs, not implicit costs.

Which of the Following Statements Is True Concerning Economic Profits