Answer:
correct option is a. $500,000 and an economic profit of $200,000
Explanation:
given data
firm produces = 200,000 units
sells = $10 each
explicit costs = $1,500,000
implicit costs = $300,000
to find out
firm has an accounting profit
solution
we first get here Revenues that is express as
Revenues = firm produces × sells ......................1
Revenues = 200000 × 10
Revenues = $2000000
and
Accounting profit will be here
Accounting profit = revenue - explicit cost ..................2
Accounting profit = 2000000 - 1500000
Accounting profit = $500000
so
Economic profit = accounting profit - implicit cost .................3
Economic profit = 500000 - 300000
Economic profit = $200000
so here
correct option is a. $500,000 and an economic profit of $200,000