Q473
Your firm is selling 1,000 units at a price of Rs. 10 per unit. The firm's total explicit cost is Rs. 8,000. The firm's implicit cost is Rs. 1,000 and the opportunity cost of your time in managing the firm is Rs. 1,000. In the above situation, which one of the following is true?
A.
Accounting profit is 0
B.
Economic profit is less than the accounting profit
AnswerC.
Marginal cost is Rs. 1,000
D.
Economic profit is Rs. 1,000
Answer: Option B
Solution
Answer: Option B
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