Arlene makes earrings in the shape of the mascot of a local university. Last year, Arlene made 250 pairs of earrings, which she sold to the university bookstore for $10 each. Arlene works out of her home; her only cost is $3 per pair of earrings for materials and $85 for tax help. If Arlene did not produce earrings, she would spend her time babysitting her nephews and make about $500 per year. Which statement is TRUE?
A) Arlene's economic profit is $1,665.
B) Arlene's total revenue is $2,500.
C) Arlene's total implicit costs are $835.
D) Arlene's accounting profit is $1,165.
Correct Answer:
Verified
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