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:

Production Possibilities Curve

A graphical representation illustrating the maximum output possibilities for two goods, given a set of inputs and technological efficiency.

Government Policy

Guidelines or rules established by governments to direct public action in specific areas such as health, education, and economic management.

Consumer Goods

Products and services that are used by individuals or households to satisfy their immediate wants and needs.

Production Possibilities

The various combinations of goods and services an economy can produce when all its resources are fully employed.