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 zero.
B) $200,000 and its economic profits were zero.
C) $100,000 and its economic profits were $100,000.
D) zero and its economic loss was $200,000.
Total revenue is 4,000 * $300 = $1,200,000 and explicit costs were $1,000,000.Accounting profits were $200,000,but implicit costs of $200,000 mean economic profit was zero.
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