Economists consider both explicit and implicit costs when measuring economic profit. The reason they consider implicit costs is that:
A) they are more conservative than accountants, who consider only accounting costs.
B) most businesses forget to pay their implicit costs.
C) a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable.
D) implicit costs are typically far larger than explicit costs.
E) implicit costs include expenses like taxes and fees to the government.
Correct Answer:
Verified
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