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

Her total revenue is:

400 jars x $3 per jar = $1200

Her total costs are:

$200 (jars) + $150 (ingredients) + $300 (opportunity cost of her time) = $650

Her economic profits are:

$1200 - $650 = $550

Cassie Produces and Sells 400 Jars of Homemade Jelly Each