Homework Answers
19.
Economic profit = Accounting profit - implicit cost
Implicit cost = Accounting profit - Economic profit = 43002 - (-43002) = 43002 + 43002 = 86004
Option D is the correct answer
20.
Economic profit = Revenue - explicit cost - implicit cost = 20000 - 5000 - 60000 = -45000
Option D is the correct answer
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