Shelley's Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last year, the firm's
A)accounting profit was $9 million.
B)economic profit was $9 million.
C)total revenue was $9 million.
D)explicit costs were $9 million.

Question

Quizplus · Accepted Answer

Total revenue is equal to the number of units sold multiplied by the price per unit, which in this case is 3 million tubs sold at $3 per tub, resulting in $9 million in total revenue. Accounting profit and explicit costs are not provided, so we cannot determine options A and D. Economic profit would require us to know the total costs (both explicit and implicit), which are not provided, so option B cannot be determined.

Shelley's Salsa Produces and Sells Organic Salsa