If the explicit costs to a firm to produce a unit of output are $6 and the firm sells 200,000 units of output for $8 per unit, the accounting profit received by the producer is

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Accounting profit is calculated as total revenue minus explicit costs. Total revenue is $8 per unit times 200,000 units, which equals $1.6 million. Total explicit costs are $6 per unit times 200,000 units, which equals $1.2 million. Therefore, accounting profit is $1.6 million minus $1.2 million, which equals $400,000.

If the Explicit Costs to a Firm to Produce a Unit