Which of the following is (are)true?
A) Accounting costs generally understate economic costs.
B) Accounting profits generally overstate economic profits.
C) In the absence of any opportunity costs, accounting profits equal economic profits.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

All statements are correct because accounting costs and profits do not take into account opportunity costs, which are considered in economic costs and profits. Therefore, without opportunity costs, both measures would be equal.

Which of the Following Is (Are)true