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Which of the Following Statements Regarding Accounting and Economic Profits

Question 228

Multiple Choice

Which of the following statements regarding accounting and economic profits is FALSE?


A) Economic profits can be zero even if accounting profits are positive.
B) Economic profits = total revenue - (explicit + implicit costs)
C) Accounting profits can be negative if economic profits are positive.
D) Accounting profits = total revenue - explicit costs

Correct Answer:

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