Refer to the table below. An output level of 25 units, this firm's accounting profit is ________, and its economic profit is ________. $$\begin{array} { | r | r | r | r | }
\hline { \text { Quantity } } & { \text { Total Revenue } } & \text { Explicit Casts } & \text { Implicit Casts } \
\hline 10 & 50 & 36 & 5 \
\hline 15 & 75 & 63 & 6 \
\hline 20 & 100 & 93 & 7 \
\hline 25 & 125 & 125 & 8 \
\hline 30 & 150 & 161 & 9 \
\hline
\end{array}$$
A)zero; $8
B)$125; $113
C)$125; zero
D)zero; −$8

Question

Refer to the table below. An output level of 25 units, this firm's accounting profit is ________, and its economic profit is ________. $$\begin{array} { | r | r | r | r | } 
\hline { \text { Quantity } } &  { \text { Total Revenue } } & \text { Explicit Casts } & \text { Implicit Casts } \
\hline 10 & 50 & 36 & 5 \
\hline 15 & 75 & 63 & 6 \
\hline 20 & 100 & 93 & 7 \
\hline 25 & 125 & 125 & 8 \
\hline 30 & 150 & 161 & 9 \
\hline
\end{array}$$
A)zero; $8
B)$125; $113
C)$125; zero
D)zero; −$8

Quizplus · Accepted Answer

At an output level of 25 units, the total revenue is $125, and the explicit costs are $125, resulting in an accounting profit of $0 (since accounting profit = total revenue - explicit costs). The economic profit also considers implicit costs, which are $8 at this output level. Therefore, the economic profit is -$8 (since economic profit = total revenue - explicit costs - implicit costs).

Refer to the Table Below A)zero; $8 B)$125; $113 C)$125; Zero D)zero; −$8

Refer to the Table Below A)zero; $8
B)$125; $113
C)$125; Zero
D)zero; −$8