The difference between the economic and accounting costs of a firm are:

A) the accountant's fees.
B) the corporate taxes on profits .
C) the opportunity costs of the factors of production that the firm owns.
D) the sunk costs incurred by the firm.
E) the explicit costs of the firm.

Opportunity Costs

The cost of an alternative that must be forgone to pursue a certain action, representing the benefits that could have been received by taking an alternative action.

Economic Costs

The total cost of choosing one action over another, including both explicit costs (direct payment) and implicit costs (opportunity costs).

Accounting Costs

Accounting costs, also known as explicit costs, refer to actual expenditures incurred by a business.