The Difference Between Zero Accounting Profit and Zero Economic Profit

The difference between zero accounting profit and zero economic profit is that

A) an economic profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm's capital.
B) an economic profit of zero indicates an unacceptable rate of return because it does not include the opportunity cost of a firm's capital.
C) an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost.
D) an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm's capital.

Correct Answer:

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