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.

Question

Quizplus · Accepted Answer

Total revenue refers to the amount of money a company earns from selling its products or services. In this case, the firm sold 2 million computer chips at a price of $10 per chip, so their total revenue for the year was $20 million. Accounting profit, economic profit, and explicit costs require additional information, such as the firm's expenses, to be properly calculated.

A Certain Firm Manufactures and Sells Computer Chips