To answer: The question by considering the situation given Concept Introduction: Total revenue: The total revenue is defined as the total income made out by the firms from the sale of goods and services. The total revenue is calculated by multiplying the price of the commodity in the quantity of the commodity. Accounting profit: The accounting profit is calculated by deducting the explicit costs from the total revenue. The explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc… Opportunity Cost : The opportunity cost is defined as the next best activity forgone, that is if you want to gain something you need to forgone something at the same time

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Chapter 9, Problem 2P

To determine

To answer:

The question by considering the situation given

Concept Introduction:

Total revenue: The total revenue is defined as the total income made out by the firms from the sale of goods and services. The total revenue is calculated by multiplying the price of the commodity in the quantity of the commodity.

Accounting profit: The accounting profit is calculated by deducting the explicit costs from the total revenue. The explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc…

Opportunity Cost: The opportunity cost is defined as the next best activity forgone, that is if you want to gain something you need to forgone something at the same time

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