Suppose that a firm produces 140,000 units a year and sells them all for $15 each. The explicit costs of production are $1,700,000 and the implicit costs of production are $275,000. The firm earns an accounting profit of

Multiple Choice

• $400,000 and an economic profit of $125,000.
• $2,100,000 and an economic profit of $140,000.
• $140,000 and an economic profit of $2,100,000.
• $125,000 and an economic profit of $400,000.