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

Quizplus · Accepted Answer

Accounting profit is calculated as Total Revenue minus Explicit Costs, which is $125 - $125 = $0. Economic profit is calculated as Total Revenue minus the sum of Explicit and Implicit Costs, which is $125 - ($125 + $8) = -$8.

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