# Microeconomics

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3. Suppose that a business incurred implicit costs of \$500,000 and explicit costs of \$6 million in a specific year. If the firm sold 100,000 units of its output at \$60 per unit, its accounting:
A) profits were \$100,000 and its economic profits were zero.
B) losses were \$500,000 and its economic losses were zero.
C) profits were \$500,000 and its economic profits were \$1 million.
D) profits were zero and its economic losses were \$500,000.

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