A Certain Firm Manufactures and Sells Computer Chips

question 231

Multiple Choice

A certain firm manufactures and sells computer chips.Last year it sold 2 million chips at a price of $10 per chip.For last year,the firm's

• A) accounting profit was $20 million.
• B) economic profit was $20 million.
• C) total revenue was $20 million.
• D) explicit costs was $20 million.

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Definitions:

Quantity Demanded

The complete quantity of a product or service that consumers are eager and financially able to acquire at a certain price.

Quantity Supplied

The overall quantity of a particular product or service that vendors are willing and prepared to trade at an agreed price during a defined time period.

Supply Increase

A situation in economics where the quantity of goods or services offered by businesses grows, typically leading to lower prices if demand remains constant.

Supply Decrease

A reduction in the overall amount of goods and services that producers are willing and able to offer at a given price level.