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A Business Produces 400 Items and Sells Them for $15

Question 107

Multiple Choice

A business produces 400 items and sells them for $15 each for a total of $6,000. The total cost of producing the items is $4,500 in explicit cost and $1,000 in implicit cost. Economic profit is:


A) $0.
B) $500.
C) $1,000.
D) $1,500.

Correct Answer:

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