Suppose that a firm produces 200,000 units a year and sells them all for $10 each. the explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. the firm earns an accounting profit of and an economic profit of

Accounting profit will be $500000

Economic profit will be $200000

Explanation:

We have given number of units produces = 200000

Cost of one unit = $10

So total cost of production = 100000×$10 = $1000000

Explicit cost = $1500000

And implicit cost = $300000

We know that accounting profit = revenue - explicit cost = $1000000-$1500000 = $500000

And economic profit = revenue - implicit cost = $1000000-$300000 = $200000  

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