{"id":54329,"date":"2024-04-16T00:08:20","date_gmt":"2024-04-16T00:08:20","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54329"},"modified":"2024-04-16T00:08:20","modified_gmt":"2024-04-16T00:08:20","slug":"a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/","title":{"rendered":"A firm produces 2,00,000 units a year and sells all for Rs. 10 each. The explicit costs of production are Rs. 15,000 and the implicit costs of production are Rs. 3,00,000. The firm has an accounting profit of"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 5,00,000 and an economic profit of Rs. 2,00,000&#8243; option2=&#8221;Rs. 4,00,000 and an economic profit of Rs. 2,00,000&#8243; option3=&#8221;Rs. 3,00,000 and an economic profit of Rs. 4,00,000&#8243; option4=&#8221;Rs. 2,00,000 and an economic profit of Rs. 5,00,000&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is A. Rs. 5,00,000 and an economic profit of Rs. 2,00,000.<\/p>\n<p>Accounting profit is the difference between total revenue and explicit costs. In this case, the accounting profit is 2,00,000 units * Rs. 10\/unit &#8211; Rs. 15,000 = Rs. 5,00,000.<\/p>\n<p>Economic profit is the difference between total revenue and total costs, which includes both explicit and implicit costs. In this case, the economic profit is 2,00,000 units * Rs. 10\/unit &#8211; Rs. 15,000 &#8211; Rs. 3,00,000 = Rs. 2,00,000.<\/p>\n<p>Therefore, the firm has an accounting profit of Rs. 5,00,000 and an economic profit of Rs. 2,00,000.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Option A: Rs. 5,00,000 and an economic profit of Rs. 2,00,000. This is the correct answer.<\/li>\n<li>Option B: Rs. 4,00,000 and an economic profit of Rs. 2,00,000. This option is incorrect because the economic profit is Rs. 2,00,000, not Rs. 4,00,000.<\/li>\n<li>Option C: Rs. 3,00,000 and an economic profit of Rs. 4,00,000. This option is incorrect because the economic profit is Rs. 2,00,000, not Rs. 4,000.<\/li>\n<li>Option D: Rs. 2,00,000 and an economic profit of Rs. 5,00,000. This option is incorrect because the accounting profit is Rs. 5,00,000, not Rs. 2,000.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 5,00,000 and an economic profit of Rs. 2,00,000&#8243; option2=&#8221;Rs. 4,00,000 and an economic profit of Rs. 2,00,000&#8243; option3=&#8221;Rs. 3,00,000 and an economic profit of Rs. 4,00,000&#8243; option4=&#8221;Rs. 2,00,000 and an economic profit of Rs. 5,00,000&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-54329","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A firm produces 2,00,000 units a year and sells all for Rs. 10 each. The explicit costs of production are Rs. 15,000 and the implicit costs of production are Rs. 3,00,000. The firm has an accounting profit of<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A firm produces 2,00,000 units a year and sells all for Rs. 10 each. The explicit costs of production are Rs. 15,000 and the implicit costs of production are Rs. 3,00,000. The firm has an accounting profit of\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 5,00,000 and an economic profit of Rs. 2,00,000&#8243; option2=&#8221;Rs. 4,00,000 and an economic profit of Rs. 2,00,000&#8243; option3=&#8221;Rs. 3,00,000 and an economic profit of Rs. 4,00,000&#8243; option4=&#8221;Rs. 2,00,000 and an economic profit of Rs. 5,00,000&#8243; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:08:20+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A firm produces 2,00,000 units a year and sells all for Rs. 10 each. The explicit costs of production are Rs. 15,000 and the implicit costs of production are Rs. 3,00,000. The firm has an accounting profit of","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/","og_locale":"en_US","og_type":"article","og_title":"A firm produces 2,00,000 units a year and sells all for Rs. 10 each. The explicit costs of production are Rs. 15,000 and the implicit costs of production are Rs. 3,00,000. The firm has an accounting profit of","og_description":"[amp_mcq option1=&#8221;Rs. 5,00,000 and an economic profit of Rs. 2,00,000&#8243; option2=&#8221;Rs. 4,00,000 and an economic profit of Rs. 2,00,000&#8243; option3=&#8221;Rs. 3,00,000 and an economic profit of Rs. 4,00,000&#8243; option4=&#8221;Rs. 2,00,000 and an economic profit of Rs. 5,00,000&#8243; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T00:08:20+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-firm-produces-200000-units-a-year-and-sells-all-for-rs-10-each-the-explicit-costs-of-production-are-rs-15000-and-the-implicit-costs-of-production-are-rs-300000-the-firm-has-an-accounting-p\/","name":"A firm produces 2,00,000 units a year and sells all for Rs. 10 each. 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