Consider the following statements about economic profits and accounting profits. Select all the statements which are true. Economic profits are always larger than accounting profits Firms that earn zero economic profits probably earn positive accounting profits Economic profits include both explicit and implicit costs, while accounting profits include only implicit costs Publicly traded firms report accounting profits, not economic profits

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Consider the following statements about economic profits and accounting profits. Select all the
statements which are true.
Economic profits are always larger than accounting profits
Firms that earn zero economic profits probably earn positive accounting profits
Economic profits include both explicit and implicit costs, while accounting profits include only implicit costs
Publicly traded firms report accounting profits, not economic profits
Transcribed Image Text:Consider the following statements about economic profits and accounting profits. Select all the statements which are true. Economic profits are always larger than accounting profits Firms that earn zero economic profits probably earn positive accounting profits Economic profits include both explicit and implicit costs, while accounting profits include only implicit costs Publicly traded firms report accounting profits, not economic profits
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