Refer to the table below. An output level of 15 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)$6; $63
B)$12; $6
C)$6; $12
D)$63; $6

Question

Refer to the table below. An output level of 15 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)$6; $63
B)$12; $6
C)$6; $12
D)$63; $6

Quizplus · Accepted Answer

Accounting profit is calculated as Total Revenue minus Explicit Costs, which is $75 - $63 = $12. Economic profit is calculated as Total Revenue minus both Explicit and Implicit Costs, which is $75 - ($63 + $6) = $6.

Refer to the Table Below A)$6; $63 B)$12; $6 C)$6; $12 D)$63; $6

Refer to the Table Below A)$6; $63
B)$12; $6
C)$6; $12
D)$63; $6