Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1...

  • Thread starter Thread starter Carmen Denise B
  • Start date Start date
C

Carmen Denise B

Guest
...million in a specific yea?
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. $100,000 and its economic profits were $100,000.
C. $200,000 and its economic profits were zero.
D. zero and its economic loss was $200,000.
 
Back
Top