One of the most important differences between a firm‟s economic profit and its accounting profit is the subtraction of:
A Costs incurred when hiring labor, capital, and land.
B Any explicit cost incurred by the entrepreneur for risk taking.
C Any implicit charges for the use of capital owned by the entrepreneur.
D Any taxes on the retained earnings of the firm.
Answer:A
One of the most important differences between a firm‟s economic profit and its accounting profit is the subtraction of:
A Costs incurred when hiring labor, capital, and land. B Any explicit cost incurred by the entrepreneur for risk taking. C Any implicit charges for the use of capital owned by the entrepreneur. D Any taxes on the retained earnings of the firm.