The table below provides the annual revenues and costs for a family-owned firm producing catered meals.
TABLE 7-1
-Refer to Table 7-1.To an accountant,this family-owned catering company is earning ________.To an economist,the same firm is earning ________.
A)zero profit; economic losses
B)zero profit; normal profits
C)positive profits; economic losses
D)economic profits; economic profits
E)economic profits; economic losses

Question

The table below provides the annual revenues and costs for a family-owned firm producing catered meals.
  TABLE 7-1
-Refer to Table 7-1.To an accountant,this family-owned catering company is earning ________.To an economist,the same firm is earning ________.
A)zero profit; economic losses 
B)zero profit; normal profits 
C)positive profits; economic losses 
D)economic profits; economic profits 
E)economic profits; economic losses

Quizplus · Accepted Answer

Accountants consider only explicit costs, so they see positive profits. Economists include both explicit and implicit costs, so they may see economic losses if implicit costs are high.

The Table Below Provides the Annual Revenues and Costs for a Family-Owned