Question: Economists consider both explicit costs and implicit costs when measuring economic profit. The reason economists consider implicit costs is that A. most businesses forget to

Economists consider both explicit costs and implicit costs when measuring economic profit. The reason economists consider implicit costs is that

A. most businesses forget to pay their implicit costs.

B. implicit costs include expenses like taxes and fees to the government.

C. implicit costs are typically far larger than explicit costs.

D.they are more conservative than accountants, who consider only accounting costs.

E. implicit costs are relevant for firms deciding whether to stay in business.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!