Economic Profits Are Less Than Accounting Profits Because the Calculation

Multiple Choice

Economic profits are less than accounting profits because the calculation of economic profit

A) includes an amount for depreciation.
B) includes an explicit charge for risk taking.
C) includes the implicit charges for the use of capital owned by the firm and for risk taking.
D) includes the implicit charges for the use of capital owned by the firm and for income taxes.
E) is stipulated in regulations set forth by the Canada Revenue Agency.