Which of the following statements is false?
A)Economic costs include the opportunity costs of the resources owned by the firm.
B)Accounting costs typically include only explicit costs.
C)Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs.
D)Accounting profit is equal to total revenue minus implicit costs.

Question

Quizplus · Accepted Answer

Accounting profit is equal to total revenue minus explicit costs, not implicit costs. Economic profit takes into account the opportunity cost of resources, including implicit costs.

Which of the Following Statements Is False