Why should a firm be concerned about the opportunity costs


Problem

Accounting rules determine a firm's ‘‘profits'' for tax- and dividend-paying purposes. So why should any firm be concerned about its economic profits? Specifically, why should a firm be concerned about the opportunity costs of the people who invest in it when those costs never enter into its accounting statements?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why should a firm be concerned about the opportunity costs
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