Suppose a firm incurred explicit costs of $900 and opportunity costs of $200 during a day. If that day the firm sold 8 units at $300 per unit its accounting profits are: $1,500 and its economic profits are $1,700 $1,500 and its economic profits are $1,300 $1,300 and its economic profits are $1,700 $1,300 and its economic profits are $1,300
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The firm sold 8 units at $300 per unit, so the total revenue is 8 * $300 = $2400. Show more…
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