Company R produces digital screen components used in electric vehicles. In fiscal year 2022, Company R earned an accounting profit of $10 million. However, Company R could have used its production facilities to produce digital screen components for smartphones, which would have generated $5 million in profits and saved the company $3 million in production costs. Which of the following statements is true? 

a. Company R earned an economic profit of $2 million. 

b. Company R suffered an economic loss of $7 million. 

c. Company R suffered an economic loss of $2 million. 

d. Company R earned an economic profit of $18 million.

Answer rating: 100% (QA)

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