If Giordano's pizza in Chicago computed its profits without taking into account its implicit opportunity costs, it would then only be considering its _____ profit.
A)explicit financial
B)accounting
C)implicit
D)economic

Question

Quizplus · Accepted Answer

Implicit opportunity costs are the costs associated with foregone alternatives, such as the potential profits that Giordano's could have earned if it used its resources to pursue a different opportunity. Accounting costs, on the other hand, include only the explicit costs of producing a good or service, such as the cost of materials and labor. By ignoring implicit opportunity costs, Giordano's would only be considering its accounting profit.

If Giordano's Pizza in Chicago Computed Its Profits Without Taking