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Commerce · Q1120

Economics

Graduate and Post Graduate · Commerce · question 1120

Q1120

A firm produces 2,00,000 units a year and sells all for Rs. 10 each. The explicit costs of production are Rs. 15,000 and the implicit costs of production are Rs. 3,00,000. The firm has an accounting profit of

A.
Rs. 5,00,000 and an economic profit of Rs. 2,00,000
B.
Rs. 4,00,000 and an economic profit of Rs. 2,00,000
Answer
C.
Rs. 3,00,000 and an economic profit of Rs. 4,00,000
D.
Rs. 2,00,000 and an economic profit of Rs. 5,00,000

Answer: Option B

Solution

Answer: Option B
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