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**Question 18:** Suppose that a business incurred implicit costs of $400,000 and explicit costs of $4 million in a specific year. If the firm sold 100,000 units of its output at $48 per unit, its accounting and economic profits would be calculated as follows: **Multiple Choice:** - O profits were $400,000 and its economic profits were $0. - O losses were $0 and its economic losses were $800,000. - O profits were $400,000 and its economic profits were $800,000. - O profits were $800,000 and its economic profits were $400,000.

**Question 18:** Suppose that a business incurred implicit costs of $400,000 and explicit costs of $4 million in a specific year. If the firm sold 100,000 units of its output at $48 per unit, its accounting and economic profits would be calculated as follows: **Multiple Choice:** - O profits were $400,000 and its economic profits were $0. - O losses were $0 and its economic losses were $800,000. - O profits were $400,000 and its economic profits were $800,000. - O profits were $800,000 and its economic profits were $400,000.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Question 18:** Suppose that a business incurred implicit costs of $400,000 and explicit costs of $4 million in a specific year. If the firm sold 100,000 units of its output at $48 per unit, its accounting and economic profits would be calculated as follows: **Multiple Choice:** - O profits were $400,000 and its economic profits were $0. - O losses were $0 and its economic losses were $800,000. - O profits were $400,000 and its economic profits were $800,000. - O profits were $800,000 and its economic profits were $400,000.
Transcribed Image Text:**Question 18:** Suppose that a business incurred implicit costs of $400,000 and explicit costs of $4 million in a specific year. If the firm sold 100,000 units of its output at $48 per unit, its accounting and economic profits would be calculated as follows: **Multiple Choice:** - O profits were $400,000 and its economic profits were $0. - O losses were $0 and its economic losses were $800,000. - O profits were $400,000 and its economic profits were $800,000. - O profits were $800,000 and its economic profits were $400,000.
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