If a business is profitable from an accountant's point of view, then:
A)it is always profitable from an economist's point of view
B)it is never profitable from an economist's point of view
C)economic profit will be higher than accounting profit
D)we cannot say without more information

Question

Quizplus · Accepted Answer

Just because a business is profitable from an accountant's point of view does not necessarily mean that it is also profitable from an economist's point of view. Economic profit takes into account the opportunity cost of resources used in the business, which may be different from the accounting profit. Therefore, we cannot say for sure without additional information.

If a Business Is Profitable from an Accountant's Point of View