Question

Economic costs of production differ from accounting costs in thata. economic costs add the opportunity costs of a firm using its own resources while accounting costs do notb. accounting costs include expenditures for hired resources while economic costs do notc. economic costs include expenditures for hired resources while accounting costs do notd. accounting costs are always larger than economic cost

Answer 1

Answer: Economic costs of production differ from accounting costs in that "a. economic costs add the opportunity costs of a firm using its own resources while".

Explanation: The opportunity cost is the cost of the alternative that we waive when we make a certain decision, including the benefits that we could have obtained from having chosen the alternative option.

In other words it is referred to as "the value of the best option not selected."

Accounting costs do not take into account opportunity costs.