Which of the following statements is FALSE?
A) A correct measure of a firm's economic cost includes both accounting and opportunity cost.
B) The accounting profit earned by a firm will always be less than its economic profit.
C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources.
D) The accounting profit of a firm is its total revenue minus total explicit costs.
Correct Answer:
Verified
Q109: Explicit costs are
A) the opportunity costs of
Q119: Of the owners of the following firms,
Q120: Comparing proprietorships with partnerships, which is true?
A)
Q121: Suppose that you open your own business
Q123: Often single-owner proprietorships seem more profitable than
Q127: Single-owner proprietorships often unintentionally exaggerate their profits
Q129: Economists also refer to the normal rate
Q131: Which of the following is NOT a
Q132: The opportunity cost of capital is
A) the
Q138: Economic profits are equal to
A) total revenues
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