Answer to Question #115416 in Microeconomics for Lu

Question #115416
Suppose that a firm produces 200,000 units a year and sells them all for 10 dollar's each. The explicit costs of production are 1,500,000 dollar's and the implicit costs of production are 300,000 dollars . The firm has an accounting profit of
1
Expert's answer
2020-05-12T10:48:59-0400

accounting profit "=" Total revenue "-" the explicit costs;

Total revenue "=" "200000\u00d7\\$10=\\$ 2000000;"

accounting profit"=2000000-1500000=\\$500000;"


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