Under perfect competition

A) economic profits are greater than accounting profits.
B) the most efficient output is always the most profitable level of output.
C) the firms demand and marginal revenue curves are equal only in the short run.
D) economic profits are always zero in the long run.

Economic Profits

Profits exceeding the opportunity costs of all resources used, including both explicit and implicit costs.

Accounting Profits

The difference between total revenues and explicit costs, representing the net income a company reports on its financial statements.

Most Efficient Output

The level of production at which a firm operates with the lowest average total cost, achieving optimal efficiency.