Suppose that a business incurred implicit costs of $300,000 and explicit costs of$1,300,000 over the past year. If the firm sold 70,000 units at $20 per unit, its accounting:O profits were $400,000 and its economic profits were $100,000O profits were $100,000 and its economic profits were zero.O profits were $100,000 and its economic losses were $200,000O losses were $200,000 and its economic profits were $100.000.tvMacBook ProDOD000F4F819F5F6F7

Accounting profit can be defined as a profit, which a firm gets after paying only the explicit cost.…

Suppose that a business incurred implicit costs of $300,000 and explicit costs of $1,300,000 over the past year. If the firm sold 70,000 units at $20 per unit, its accounting: O profits were $400,000 and its economic profits were $100,000 profits were $100,000 and its economic profits were zero. O profits were $100,000 and its economic losses were $200,000 O losses were $200,000 and its economic profits were $100,000.

Suppose that a business incurred implicit costs of $300,000 and explicit costs of $1,300,000 over the past year. If the firm sold 70,000 units at $20 per unit, its accounting: O profits were $400,000 and its economic profits were $100,000 profits were $100,000 and its economic profits were zero. O profits were $100,000 and its economic losses were $200,000 O losses were $200,000 and its economic profits were $100,000.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 6PA

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