Suppose that a business incurred explicit costs of $1.5 million and implicit costs of $300,000 last year. If the firm sold 4,500 units of its output at $450 per unit, its accounting profits were _______ and its economic profits were _______.
A) $525,000; $225,000
B) $1,725,000; $225,000
C) $525,000; $200,000
D) $1,725,000; $250,000
Answer: A) $525,000; $225,000
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