Compared with accounting costs, economic costs tend to be

C. Higher, especially for large firms organized as corporations.

D. Higher, especially for small firms organized as proprietorships.

应该选Ｃ还是Ｄ？为什么？

Please state your reason. Thank you!

How to decide different form C0.'s opportunity cost?

My choice will be D. 

I might want to see the whole question to have a deep analysis,  but here is what's in my mind now.

Accounting Costs= Explicit Costs

Economic Costs =Explicit Costs + Implicit Costs =Opportunity Costs

Accounting Profit = TR – explicit costs

Economic Profit = TR – explicit and implicit costs = Opportunity Cost

Accounting profits are Total Revenue minus the Cost of Producing Goods/Services (Baye, 2006)

Economic profit is the difference between Total Revenue and the Total Opportunity Cost of Producing Goods/Services. Economic profit is referred to as the implicit cost of giving up the next best alternative use of a resource used in producing the good/service.

If a small firm and a big corporation invested in a same project with same amount of money, the Economic Profit/ Opportunity Cost is same 50万 in turns of the value of the money.  假设，2007年我和一个欧洲回来的朋友合伙投资50万在上海新天地和在北京三里屯各开一家咖啡店，同时“Starbucks星巴克”也在同样的地点以同样的成本开了咖啡店. 对于这50万的投入对我们和星巴克的50万是一样的。一年后，星巴克由于经营不善关闭了其中一家。而我们的店（由于一直沿用源于欧州一小镇的手工研磨工艺）在经济不好情况下还能勉强维持一定数量的客人并小有盈余。在Profits 上就不同了。 但这事与之前投入的50万机会成本没有直接关系。Economic costs both of the companies are the same. 哈。。。

当然现实生活中，this large firm usually will invest much more than a papa-mama shop.  I agree with “zining”’s answer.  This question is asking …INTEND TO be higher for …the

Here’s my answer and opinion, please let know your thoughts, thank you.

agree!

the only difference between Economic Cost and Accounting Cost is IMPLICIT COST!

large corporation should have more IMPLICIT COST!

Sorry, I meant the answer should be C.

The correct answer is C,I think.

The larger firms may get more and better opportunities,so opportunity cost may be higher than that of smaller ones.

我觉得是D， 因为相对于小公司,企业家大多是公司的所有者，其要投入更多的精力去管理公司，而这些在公司的利润表是不可能作为费用列示的，因为公司所有者的回报是公司利润的分享啊，所以其不包括在小公司的accounting cost 中，但是所有者的投入包括在 economic cost 中，因其是implicit cost 的一部分，所以小公司的economic cost 要比 aaccounting cost 大； 但是在corporation 中，由于所有权和管理权的分离，职业经理人对企业的管理以工资的形式反应，其是explicit cost, 所以在accounting cost 和 economic cost 中在都有包含， 所以这部分不造成economic cost and accounting cost 的差异， 所以economic cost 和accounting cost 不会有显著的差异。

还有我觉得这题说的是在什么公司组织形式下economic cost will higher than accounting cost， 而并不是在问小公司的 economic profit 大还是大公司的大，是小的和小的比，不是小的和大的比， 所以楼上的理解有问题吧。

补充下是在什么公司组织形式下economic cost 要更大于accounting cost, 所以像一些投资机会这些相同的影响因素已经排除了我觉得，因为题目说especially in

C吧，CFA对opportunity cost 的定义我记得是指放弃最优选择，而做次优项目的收益，那么，对于大型公司来讲，可以选择的项目会比小公司更多更广泛一点，也即大公司的次优项目的收益感觉上应该比小公司的次优项目的收益大些。

另外，讲到opportunity cost的时候，还有一个概念叫normal profit，好像是讲entrepreneurial的，那么大公司这块显然也要较小公司大点，这块不太确定了。