Economic profits are A the same as accounting profits when f

Economic profits are

A. the same as accounting profits when firms do not own capital equipment.

B. always greater than accounting profits.

Cequal to accounting profits plus the implicit costs of the firm.

D. whatever remains after all opportunity costs have been taken into account.

Solution

Ans: whatever remains after all opportunity costs have been taken into account.

Explanation:

Accounting profit = Total revenue - explicit cost

Economic profit = Total revenue - explicit cost - implicit cost

Economic profit is always less than accounting profit if implicit cost(opportunity cost) is greater than zero.