When economic profits are zero,accounting profits are most likely:

Question

Quizplus · Accepted Answer

When economic profits are zero, it means that the business is earning enough revenue to cover both its explicit and implicit costs. Accounting profits only take into account the explicit costs, such as wages, rent, and materials, but not the opportunity cost of the resources employed. Therefore, when economic profits are zero, accounting profits are still positive.

When Economic Profits Are Zero,accounting Profits Are Most Likely