Which of the following statements is true Select one: a. If economic profit is negative, accounting profit must also be negative. b. When economic profit is zero, the firm could have done better putting their resources in some other industry of comparable risk. c. If accounting profit is positive, economic profit must be negative. d. None of the above statements is true. e. Implicit costs are the opportunity cost of the owner's resources

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Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.