82) Book profit

a) includes the opportunity cost of capital. b) equals economic profit plus risk cost and the opportunity cost of capital. c) is profit after taxes. d) exaggerates real profit. e) includes risk cost.

83) Which of the following statements is true?

a) Book profit could be positive when economic profit is negative. b) Inflation makes book profits look lower than they really are. c) Economic profit equals book profit plus risk cost and the opportunity cost of capital. d) Book profit and economic profit are the same. e) Risk cost is the return that might have been realized on another investment not taken.