A firm\'s accounting profit is called a normal profit when its average cost is m

Question

A firm's accounting profit is called a normal profit when its

average cost is minimum.

economic profit is equal to zero.

accounting profit is equal to zero.

economic profit is equal to accounting profit.

opportunity cost is equal to zero.

A firm's accounting profit does not include its:

explicit costs.

opportunity costs.

fixed costs.

variable costs.

sunk costs.

a.

average cost is minimum.

b.

economic profit is equal to zero.

c.

accounting profit is equal to zero.

d.

economic profit is equal to accounting profit.

opportunity cost is equal to zero.

A firm's accounting profit does not include its:

a.

explicit costs.

b.

opportunity costs.

c.

fixed costs.

d.

variable costs.

e.

sunk costs.

Explanation / Answer

option D is correct, when the economic profit and accounting profit both are equal,

accounting profit does not includes: opportunity costs, so option B is correct

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