Answer:
d. $1,500 and its economic profits are $1,300.
Explanation:
The computation is shown below
For accounting profit, it is
= Total revenue - Explicit cost
where,
Total revenue is = 8 units × $300 per unit = $2,400
And, the explicit cost is $
900
So, the accounting profit is
= $2,400 - $900
= $1,500
And, the economic profit is
= Total Revenue - explicit cost - implicit cost
= $2,400 - $900 - $200
= $1,300
Simply applied the above formulas so that the both profits could arrive
