Which of the following statements is FALSE?
A) A correct measure of a firm's economic cost includes both accounting and opportunity cost.
B) The accounting profit earned by a firm will always be the same as its economic profit.
C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources.
D) The accounting profit of a firm is its total revenue minus total explicit costs.
Correct Answer:
Verified
Q128: Suppose that you open your own business
Q129: Economists also refer to the normal rate
Q130: If the explicit costs to a firm
Q131: Which of the following is NOT a
Q132: The opportunity cost of capital is
A) the
Q134: Suppose the best investment you could make
Q135: When an entrepreneur invests his own financial
Q136: Economic profits equal
A) accounting profits.
B) accounting profits
Q137: Accounting profits are total revenues minus
A) all
Q138: Economic profits are equal to
A) total revenues
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