{"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>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97df537a630\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Rs. 5,00,000 and an economic profit of Rs. 2,00,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Rs. 4,00,000 and an economic profit of Rs. 2,00,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Rs. 3,00,000 and an economic profit of Rs. 4,00,000                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Rs. 2,00,000 and an economic profit of Rs. 5,00,000                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--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. <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> 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 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 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>Join Our Telegram Channel Subscribe on YouTube<\/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":[],"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. 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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. 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