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2 . Peaches Peanut Butter Company sells 5 , 0 0 0 jars of peanut butter at a price of $ 5 per jar. The

2. Peaches Peanut Butter Company sells 5,000 jars of peanut butter at a price of $5 per jar. The explicit cost is $20,000. The cost of what their capital could earn elsewhere is $3,000 and they could also be paid $10,000 by selling their peaches instead of adding them to their peanut butter. Note: Calculate always means: Show your work!
a. Calculate Total Revenue
Total Revenue= Price of Jar * Number of Jars Sold
Total Revenue = $5*5,000
Total Revenue = $25,000
b. Calculate total implicit cost
c. Calculate accounting profit
d. Calculate economic profit
e. Should the company sell peanut butter or sell peaches? Explain.

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