It is not true of economic profits that they
A)are a reward for bearing risks.
B)are generally greater than accounting profits.
C)are zero in a competitive market.
D)are difficult to measure.

Question

Quizplus · Accepted Answer

Economic profits are not generally greater than accounting profits. Economic profits take into account both explicit and implicit costs, including opportunity costs, whereas accounting profits consider only explicit costs. This typically makes economic profits lower than accounting profits, not greater.

It Is Not True of Economic Profits That They