​If a firm is earning negative accounting profits,it implies

A) ​That the firm's economic profits are necessarily zero
B) That the firm's economic profits are necessarily positive
C) That the firm's economic profits are necessarily negative
D) ​Accounting profits alone cannot determine economic profits

Accounting Profits

The net income a company reports on its financial statements, calculated as total revenues minus explicit costs and depreciation.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, indicating a gain beyond the normal profit levels expected in a competitive market.

Negative Profits

Occurs when a company's expenses exceed its revenues, resulting in financial loss.