The Lynx Manufacturing Company produces components used in electronic toys. In fiscal year 2017, Lynx earned an accounting profit of $3 million. However, Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs. Which of the following statements is true?
A. Lynx suffered an economic loss of $500,000.
B. Lynx suffered an economic loss of $2.5 million.
C. Lynx earned an economic profit of $5.5 million.
D. Lynx earned an economic profit of $500,000.
Answer: D
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