The Cakery Bakery sells 200 muffins at a price of $2 per muffin. Its explicit costs for producing 200 muffins are $350. The cakery bakery's economic profits are
A) $35.
B) $50.
C) $400.
D) indeterminate from this information.

Question

Quizplus · Accepted Answer

Economic profits are calculated by subtracting both explicit and implicit costs from total revenue. Since the question does not provide information about implicit costs, it's impossible to determine the economic profits.

The Cakery Bakery Sells 200 Muffins at a Price of $2