Economists claim that a farmer who owns her land, provides all her own labor, and calculates her profits from the farm by subtracting explicit costs from total revenues will Multiple Choice understate her accounting profits. overstate her accounting profits. overstate her economic profits. understate her economic profits.

Economists claim that a farmer who owns her land, provides all her own labor, and calculates her profits from the farm by subtracting explicit costs from total revenues will overstate her economic profits. When you overstate something you are exaggerating it or stretching out the truth of some sorts. In this case, because the farmer owns and operates everything solely by herself, it is common for her to overstate her profits verse the full truth.