Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were
A)$100,000 and its economic profits were $0.
B)$200,000 and its economic profits were $0.
C)$100,000 and its economic profits were $100,000.
D)$0 and its economic loss was $200,000.

Question

Quizplus · Accepted Answer

The Answer of Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were
A)$100,000 and its economic profits were $0.
B)$200,000 and its economic profits were $0.
C)$100,000 and its economic profits were $100,000.
D)$0 and its economic loss was $200,000.

Suppose That a Business Incurred Implicit Costs of $200,000 and Explicit