Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm earns an accounting profit of ________ and an economic profit of ________.
A. $1,700,000; $500,000
B. $500,000; $200,000
C. $500,000; $1,700,000
D. $1,700,000; $200,000
Answer: B
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