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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
Peaches Peanut Butter Company sells jars of peanut butter at a price of $ per jar. The explicit cost is $ The cost of what their capital could earn elsewhere is $ and they could also be paid $ 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 $
Total Revenue $
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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