Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic

Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic profit.

1. Accounting profit is different than economic profit because:
a. economic profit is only important to economists and does not apply to the actual decision to launch a new business.
b. accounting profit includes all financial and opportunity costs of starting a business.
c. economic profit is what is reported on your tax return.
d. accounting profit ignores the opportunity cost of launching a new business
2. b. After doing your research, you are confident that you will make an accounting profit if you launch the business but feel it is very unlikely that you will make an economic profit. In this case, you__________ start the business.

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