Question

Economic profits and losses:__________.

a. have no influence on the composition of domestic output.
b. are both considered by economists to be a part of production costs.
c. are essential to the reallocation of resources from less desired to more desired goods.
d. equalize the distribution of income in the long run.

Answer 1

b. are both considered by economists to be a part of production costs.

Step-by-step explanation:

• The economic profits and the loss are the difference between the revenues that ate received form the sales of an output and cost of an input applied. These cost of the inputs and in the calculation of the both these costs are deduced from the revenue costs.