Katherine gives piano lessons for $15 per hour.She also grows flowers,which she arranges and sells at the local farmer's market.One day she spends 5 hours planting $50 worth of seeds in her garden.Once the seeds have grown into flowers,she can sell them for $150 at the farmer's market.Which of the following statements is correct regarding Katherine's profits from selling flowers?
A) Katherine's accounting profits are $100,and her economic profits are $25.
B) Katherine's accounting profits are $100,and her economic profits are $75.
C) Katherine's accounting profits are $25,and her economic profits are $100.
D) Katherine's accounting profits are $75,and her economic profits are $125.
Correct Answer:
Verified
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