Suppose that for a particular business there are no implicit costs. Then
A)accounting profit will be greater than economic profit.
B)accounting profit will be the same as economic profit.
C)accounting profit will be less than economic profit.
D)the relationship between accounting profit and economic profit cannot be determined without more information.

Question

Quizplus · Accepted Answer

When there are no implicit costs, accounting profit and economic profit are the same because economic profit subtracts both explicit and implicit costs from total revenue, and without implicit costs, the only deductions are explicit costs, which are also deducted in calculating accounting profit.

Suppose That for a Particular Business There Are No Implicit