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Jerome, the Florist, Sold 500 Bridesmaid's Bouquets in June

Question 78

Multiple Choice

Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9. If he sold each bouquet at the constant market price of $9, Jerome:


A) made an economic profit of $500.
B) made a loss of $500.
C) made an economic profit of $1,500.
D) made a loss of $1,500.
E) should have shut down in June.

Correct Answer:

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