Which of the following is true?

Question

Quizplus · Accepted Answer

Net income is the total revenue of a firm minus all explicit (out-of-pocket) costs, including depreciation. Accounting profit, on the other hand, only takes explicit costs into account and ignores implicit costs such as opportunity costs, so it will be higher than net income. Economic profit further deducts implicit costs from total revenue and is generally lower than accounting profit. Therefore, option C is the only true statement.

Which of the Following Is True