Compared to accounting profits, economic profit is ___________ because account…

Accounting and Economic Costs/Profit

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Compared to accounting profits, economic profit is  ___________ because accounting profit takes into account  ___________ while economic profit takes into account  ___________. 

higher; both explicit and implicit costs; only implicit costs 

higher; both explicit and implicit costs; only explicit costs 

lower; only explicit costs; both explicit and implicit costs 

lower; only implicit costs; both explicit and implicit costs 

lower; both explicit and implicit costs; only explicit costs 

I don't know

More Accounting and Economic Costs/Profit Questions:

Melissa can work for the local grocery store and earn $35,000 a year. Instead, she runs her own business making revenue of $80,000. Her expenses in running her business are $12,000 for rent and equipment, and $20,000 to pay her workers. What are her accounting and economic profits?

Melissa can work for the local grocery store and earn $35,000 a year. Instead, she runs her own business making revenue of $80,000. Her expenses in running her business are $12,000 for rent and equipment, and $20,000 to pay her workers. What are her accounting and economic profits?

Melissa can work for the local grocery store and earn $35,000 a year. Instead, she runs her own business making revenue of $80,000. Her expenses in running her business are $12,000 for rent and equipment, and $20,000 to pay her workers. What are her accounting and economic profits?

Compared to accounting profits, economic profit is ___________ because account…

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Accounting and Economic Costs/Profit

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