Cassie produces and sells 400 jars of homemade jelly each month for $3 each.Each month,she pays $200 for jars,$150 for ingredients,and uses her own time,with an opportunity cost of $300.Her economic profits each month are:

Question

Quizplus · Accepted Answer

Economic profit is calculated as total revenue minus total costs (including opportunity costs). Cassie's total revenue is 400 jars * $3 = $1200. Her total costs are $200 (jars) + $150 (ingredients) + $300 (opportunity cost) = $650. Therefore, her economic profit is $1200 - $650 = $550.

Cassie Produces and Sells 400 Jars of Homemade Jelly Each