Suppose that a firm produces 200,000 units a year and sells them all for $20 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of: Select one: A. $2,200,000 O B. $2,500,000 C. $3,700,000 D. $4,000,000

Suppose that a firm produces 200,000 units a year and sells them all for $20 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of: Select one: A. $2,200,000 O B. $2,500,000 C. $3,700,000 D. $4,000,000

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 4CQQ

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Question

Suppose that a firm produces 200,000 units a year and sells
them all for $20 each. The explicit costs of production are
$1,500,000 and the implicit costs of production are
$300,000. The firm has an accounting profit of:
Select one:
O A. $2,200,000
B. $2,500,000
O c. $3,700,000
O D. $4,000,000

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