In general, which statements are true?

1 Opportunity costs are greater than accounting costs.
2 Opportunity costs are less than accounting costs.
3 Economic profits are greater than accounting profits.
4 Economic profits are less than accounting profits.
Question 22Select one:

A.
1 and 4

B.
2 and 4

C.
2 and 3

D.
1 and 3

E.
1 only

Question

In general, which statements are true?

1	Opportunity costs are greater than accounting costs.
2	Opportunity costs are less than accounting costs.
3	Economic profits are greater than accounting profits.
4	Economic profits are less than accounting profits.
Question 22Select one:

A.
1 and 4

B.
2 and 4

C.
2 and 3

D.
1 and 3

E.
1 only

Accepted Answer

∻Solution∻ ‖ a ⋮ Opportunity Costs vs. Accounting Costs: Opportunity costs include both explicit and implicit costs, while accounting costs only include explicit costs. Therefore, opportunity costs are generally greater than accounting costs. ‖ ‖ b ⋮ Economic Profits vs. Accounting Profits: Economic profits are calculated by subtracting both explicit and implicit costs from total revenue, whereas accounting profits only subtract explicit costs. Hence, economic profits are usually less than accounting profits. ‖ ∻Answer∻ ⚹ A. 1 and 4 ⚹ ∻Key Concept∻ ⚹ Opportunity costs are greater than accounting costs, and economic profits are less than accounting profits. ⚹ ∻Explanation∻ ⚹ Opportunity costs account for both explicit and implicit costs, making them higher than accounting costs, which only consider explicit costs. Economic profits subtract both types of costs from total revenue, resulting in a lower figure compared to accounting profits, which only subtract explicit costs. ⚹◊What is the relationship between opportunity costs and accounting costs in Microeconomics?⍭ Generate me a similar question◊

Sia