Question

The difference between zero accounting profit and zero economic profit is that A. economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero accounting profit. B. economists do not include opportunity cost in zero economic profit, while accountants do include opportunity cost in zero accounting profit. C. economists include opportunity cost in zero accounting profit, while accountants do not include opportunity cost in zero economic profit. D. economists do not include opportunity cost in zero accounting profit, while accountants do include opportunity cost in zero economic profit.

Answer 1

Answer:

The correct answer is A. economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero accounting profit.

Explanation:

Because the economists include opportunity cost in their profit calculation, economic profits always tend to be lower than the accounting profits and economic losses does not necessarily mean that accounting there are accounting losses.