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5. A sports equipment firm manufactures and sells basketballs. Last year it sold 12,000 basketballs at...

5. A sports equipment firm manufactures and sells basketballs. Last year it sold 12,000 basketballs at a price of $40 per basketball. For last year, the firm's
A. explicit costs were $480,000.
B. implicit costs were $480,000.
C. accounting profit was $480,000.
D. economic profit was $480,000.
E. total revenue was $480,000.


6. Toledo Tire Company produced and sold 6,000 tires. The average cost of production per tire was $70. Each
tire sold for a price of $85. Toledo Tire Company’s total costs are
A. $90,000
B. $350,000.
C. $420,000.
D. $510,000.
E. $775,000

7. Thompson Table Company produced and sold 5,000 tables. The average cost of production per table was
$150. Each tire sold for a price of $180. Thompson Table Company’s total profits are
A. less than $150,000
B. $150,000
C. $705,000.
D. $900,000.
E. more than $900,000

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Answer #1

Answer - E- Total Revenue was 480,000. Total Revenue = Total unit sold Price per unit = 12000 x 40 - # 4,8 o, co Information

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