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

Related MCQs

• Suppose a firm sells its product at a price lower than the opportunity cost of the inputs used to produce it. Which is true?
• With fixed costs of Rs. 400, a firm has average total costs of Rs. 3 and average variable costs of Rs. 2.50. Its output is:
• Implicit costs are:
• Which would be an implicit cost for a firm? The cost:
• If the short-run average variable costs of production for a firm are rising, then this indicates that:
• If a firm's revenues just cover all its opportunity costs, then:
• Marginal costs and average variable costs are equal when
• In economic theory the costs of a firm
• The average total costs of the firm as defined in standard economic theory
• Costs incurred only when production occurs are known as: