Question
Suppose that a tour bus business incurred implicit costs of $600,000 and explicit costs of $7 million in a specific year. If the firm sold 125,000 tours at $60 per person, its accounting:
A) profits were $100,000 and its economic profits were $500,000.
B) losses were $100,000 and its economic losses were $700,000.
C) profits were $500,000 and its economic losses were $100,000..
D) profits were zero and its economic losses were $500,000
A) profits were $100,000 and its economic profits were $500,000.
B) losses were $100,000 and its economic losses were $700,000.
C) profits were $500,000 and its economic losses were $100,000..
D) profits were zero and its economic losses were $500,000