The Sweet Success Bakery sells 500 cakes at a price of $10 per cake. Its total economic costs for producing 500 cakes are $500. The Sweet Success Bakery's economic profits are

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Economic profits are calculated by subtracting total economic costs from total revenue. Here, total revenue is 500 cakes * $10/cake = $5,000. Total economic costs are $500. Therefore, economic profits = $5,000 - $500 = $4,500.

The Sweet Success Bakery Sells 500 Cakes at a Price