Which of the following statements is true?
A) Accounting profit usually is greater than economic profit.
B) Accountants ignore explicit costs in calculating profit.
C) Explicit costs fall as output increases.
D) Advertising is an implicit cost.
E) Economic profit always increases as output increases.

Question

Quizplus · Accepted Answer

Accounting profit is typically greater than economic profit because it does not take into account implicit costs, which are included in the calculation of economic profit.

Which of the Following Statements Is True