Suppose that a business incurred implicit costs of $400,000 and explicit costs of $3 million in a specific year. If the firm sold 100,000 units of its output at $40 per unit, its accounting: A. losses were $600,000 and its economic losses were zero. B. profits were $600,000 and its economic profits
Suppose that a business incurred implicit costs of $400,000 and explicit costs of $3 million in a specific year. If the firm sold 100,000 units of its output at $40 per unit, its accounting: A. losses were $600,000 and its economic losses were zero. B. profits were $600,000 and its economic profits
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 7PA
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Question
![Suppose that a business incurred implicit costs of
$400,000 and explicit costs of $3 million in a
specific year. If the firm sold 100,000 units of its
output at $40 per unit, its accounting:
A. losses were $600,000 and its economic losses
were zerO.
B. profits were $600,000 and its economic profits
were $1,000,000.
C. profits were $1,000,000 and its economic
profits were $600,000.
D. profits were $3,600,000O and its economic
profits were $600,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc4e78b0-bccc-46e3-8327-545d6fa873e5%2F84bcfd1a-582e-4079-85ed-c89b378a465a%2Ft308kz8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that a business incurred implicit costs of
$400,000 and explicit costs of $3 million in a
specific year. If the firm sold 100,000 units of its
output at $40 per unit, its accounting:
A. losses were $600,000 and its economic losses
were zerO.
B. profits were $600,000 and its economic profits
were $1,000,000.
C. profits were $1,000,000 and its economic
profits were $600,000.
D. profits were $3,600,000O and its economic
profits were $600,000.
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