Shelley's Salsa Produces and Sells Organic Salsa

question 572

Multiple Choice

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.

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Definitions:

Collateral

Property or assets pledged as security for repayment of a loan, subject to seizure by the lender in case of default.

Legally Enforceable

A term describing an agreement or contract that is recognized by legal authorities and can be upheld in court.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure a debt or loan, affording the lender a right to repossession if the debtor defaults.

Debtor's Property

Assets owned by an individual or entity (debtor) that owe money to creditors, which may be subject to claims or liens.