Answer to Question #50506 in Microeconomics for marcha
Accounting profit=Total Revenue-Explicit Costs==Price×N_units-Explicit Costs=$10×200000-$1500000==$500000.
b) By the definition of the economic profit we have:
Economic profit=Accounting profit-Implicit Costs==$500000-$300000=$200000.
The firms accounting profit is $500000 and the economic profit is $200000.
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