Ask Question
11 April, 14:26

Economic profits and lossesa. equalize the distribution of income in the long run. b. are essential to the reallocation of resources from less desired to more desired goods. c. have no influence on the composition of domestic output. d. are both considered by economists to be a part of production costs.

+1
Answers (1)
  1. 11 April, 16:49
    0
    The correct answer is letter "B": are essential to the reallocation of resources from less desired to more desired goods.

    Explanation:

    Economic profit is the difference between the company's profits from revenue and the overall opportunity cost. The difference between accounting profit and economic profit is significant. Only total revenue minus the explicit cost of producing goods or services is considered to calculate the accounting profit.

    The economic profit is called a loss if after subtracting the opportunity costs from revenue the figure is negative. Both profit or losses determine how resources will be allocated in a company prioritizing the more desired goods or those who are needed for the firm's operations.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Economic profits and lossesa. equalize the distribution of income in the long run. b. are essential to the reallocation of resources from ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers