Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Economic profit takes into account the full opportunity cost of all resources, including both explicit and implicit costs, whereas accounting profit only considers explicit costs. Therefore, option A is the correct statement. Option B is incorrect because it only considers explicit costs. Option C is not always true, as economic profit may be less than accounting profit if implicit costs are higher than expected. Option D is also incorrect because it only considers implicit costs.

Which of the Following Statements Is Correct