1.Suppose that a firm produces 275,000 units a year and sells them all for $8 each. The explicit costs of production are $1,800,000 and the implicit costs of production are $400,000. The firm earns an accounting profit of:

A. $400,000 and an economic profit of $0.

B. $2,200,000 and an economic profit of $275,000.

C. $275,000 and an economic profit of $2,200,000.

D. $0 and an economic profit of $400,000.

2.Suppose that you could either make your own tax return in 8 hours or hire a tax specialist to prepare it for you in 2 hours. You value your time at$20.00an hour; the tax specialist will charge you $45 an hour. The opportunity cost of preparing your own tax return is:

A. $250.

B. $45.

C. $90.

D. $160.