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2) Raj opens up a lemonade stand for two hours. He spends $10 for ingredients and sells $60 worth of lemonade. In the same two hours, he could have mowed his neighbor’s lawn for $40. Raj has an accounting profit of ____, and an economic profit of ______.

a) $50, $10
b) $90, $50
c) $10, $50
d) $50, $90

Respuesta :

thaovtp1407

Answer:

a, $50, $10

Explanation:

Given that:

  • Revenue: $60
  • Explicit cost: $10
  • Opportunity cost: $40

So, accounting profit has the following formula:

Revenue - Explicit cost

$60 - $10 = $50

  • Economic profit has the following formula:

Accounting profit - Opportunity cost

$50 - $40 = $10

We choose a, $50, $10

Hope it will find you well

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