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Question
A firms economic profit is always less than its accounting profit because
a. accounting profit considers explicit costs, which economic profit does not.
b. economic profit considers implicit costs, which accounting profit does not.
c. economic profit is always zero, no matter what kind of firm it is.
d. accounting profit considers implicit costs, which economic profit does not.
e. accounting profit is always positive, no matter what kind of firm it is.
Answer
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