Anonymous
Anonymous asked in Social ScienceEconomics · 1 month ago

Economic and Accounting Profit help?

Which of the following are true?

a. If a company has accounting loss, it can’t have economic profit.

b. If a company has accounting profit, it could have economic loss.

c. If a company has economic break-even, it must have accounting profit. 

d. If a company has economic profit, it must have accounting profit.

2 Answers

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  • Oiy
    Lv 6
    1 month ago
    Favourite answer

    A is true. Total revenue-explicit cost is negative. So economic profit cannot be positive because it has to include implicit cost.

  • Anonymous
    1 month ago

    So many cheaters

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