A business has $100 in explicit costs and sells the resulting output for $125. The normal profits
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Question:
A business has $100 in explicit costs and sells the resulting output for $125. The normal profits rate is 10 percent. Which statement is
true?
A.
Implicit costs are greater than explicit costs.
B.
Economic profits are greater than accounting profits.
C.
Economic profits are $25.
D.
Normal profits are $15.
E.
Implicit costs are $10.
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