When accounting profits are zero,which of the following is most likely to be true?

Question

Quizplus · Accepted Answer

Accounting profits only take into account explicit costs, while economic profits also consider implicit costs. Therefore, if accounting profits are zero, it is likely that the business is still incurring implicit costs, resulting in negative economic profits. Option B is possible but not most likely, while option C is unlikely as accounting profits being zero means there is no excess over the opportunity cost of production. Option D is incorrect as not all of the options are likely.

When Accounting Profits Are Zero,which of the Following Is Most