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

Question

Quizplus · Accepted Answer

Economic profit is calculated as total revenue minus total costs (explicit and implicit). The information provided only includes explicit costs, so implicit costs are unknown, making economic profit indeterminate.

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