Suppose that a business incurred implicit costs of $200,000 and explicit cost of$1million in a specific year if the firm sold 4,000 units of the output at $300 per unit , the accounting profits were A)$00,000 and it's economic profits were zero B)$200,000 and it's economic profits were zero C)$100,000 and it's economic profits were$100,000 D)zero and it's economic loss was $200,000

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Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?