Suppose That a Firm Produces 200,000 Units a Year and Sells

Multiple Choice

Suppose that a firm produces 200,000 units a year and sells them all for Rs.10 each. The explicit costs of production are Rs.1,500,000 and the implicit costs of production are Rs. 300,000. The firm has an accounting profit of:

A) rs. 500,000 and an economic profit of rs. 200,000.
B) rs. 400,000 and an economic profit of rs. 200,000.
C) rs. 300,000 and an economic profit of rs. 400,000.
D) rs. 200,000 and an economic profit of rs. 500,000.