How do economic costs of production differ from accounting costs?
A)Economic costs include expenditures for hired resources while accounting costs do not.
B)Economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.
C)Accounting costs include expenditures for hired resources while economic costs do not.
D)Accounting costs are always larger than economic costs.

Question

Quizplus · Accepted Answer

Economic costs include the opportunity costs of a firm using its own resources, which are not considered in accounting costs.

How Do Economic Costs of Production Differ from Accounting Costs