If a firm traded on the New York Stock Exchange posts an accounting pr

If a firm traded on the New York Stock Exchange posts an accounting profit of $10 million, then the firm is making a positive economic profit

A) only if the Securities and Exchange Commission (SEC) approves the accounting report.
B) only if the firm’s opportunity cost is less than $10 million.
C) only if the firm’s opportunity benefit is more than $10 million.
D) only if the firm’s management receives stock compensation.

ANSWER

B