Generally when calculating profits as total revenue minus total costs, accounting profits are larger than economic profits because economists take into account
A)only explicit costs.
B)only implicit costs.
C)both explicit and implicit costs.
D)both types of profits are always equal because they account for the same costs.

Question

Quizplus · Accepted Answer

Economic profits consider both explicit and implicit costs, while accounting profits only consider explicit costs. This makes accounting profits larger than economic profits.

Generally When Calculating Profits as Total Revenue Minus Total Costs