Suppose That a Business Incurred Implicit Costs of $200,000 and Explicit

question 76

Multiple Choice

Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year.If the firm sold 4,000 units of its output at $300 per unit,its accounting profits were:

• A) $100,000 and its economic profits were zero.
• B) $200,000 and its economic profits were zero.
• C) $100,000 and its economic profits were $100,000.
• D) zero and its economic loss was $200,000.
• Total revenue is 4,000 * $300 = $1,200,000 and explicit costs were $1,000,000.Accounting profits were $200,000,but implicit costs of $200,000 mean economic profit was zero.

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Definitions:

Caste Systems

Social stratification systems based on heredity, in which people are placed at birth into unequal groups with specific roles, rights, and duties, prominent in certain cultures.

Apartheid

The system of institutionalized racial segregation and discrimination that existed in South Africa from 1948 until the early 1990s.

Jim Crow Laws

Racial segregation laws enacted in the late 19th and early 20th centuries in the Southern United States, which enforced racial segregation and disenfranchised African Americans.

Extreme Wealth

Refers to the possession of financial assets and resources that vastly exceed those of the average individual, often to the point of allowing significant influence over economic and political processes.