suppose that a firm produces 180000 units a year and sells them all for 12 each the explicit cos

Name: suppose that a firm produces 180000 units a year and sells them all for 12 each the explicit costs of production are 1750000 and the implicit costs of production are 320000 the firm earns an 58663
Uploaded: 2023-03-17T15:21:42-08:00
Duration: 1 min 59 s
Channel: Andrew Davis
Description: suppose that a firm produces 180000 units a year and sells them all for 12 each the explicit costs of production are 1750000 and the implicit costs of production are 320000 the firm earns an 58663

Question

Geoffrey Carr · Accepted Answer

1. Calculate the total revenue: 180,000 units * $12 each = $2,160,000

Question

Suppose that a firm produces 180,000 units a year and sells them all for $12 each. The explicit costs of production are $1,750,000 and the implicit costs of production are $320,000. The firm earns an accounting profit of $410,000 and an economic profit of $90,000.

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