Accounting profit is ________ and is equal to ________.
A) income paid to capital; r*K*
B) zero; the real interest rate
C) equal to two-thirds of national income; r*
D) the same as economic profit; zero
E) equal to one-third of the labor income; r*L*

Question

Quizplus · Accepted Answer

Accounting profit is the income paid to capital, which is represented by the formula r*K, where r is the rate of return on capital and K is the amount of capital.

Accounting Profit Is ________ and Is Equal to ________

Accounting Profit Is and Is Equal to