Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

submit the answer and then watch the video feedback. Suppose in one year Leo's Lemonade Stand sells 5,000 cups of lemonade at a price of

submit the answer and then watch the video feedback. Suppose in one year Leo's Lemonade Stand sells 5,000 cups of lemonade at a price of $0.25 per cup. Leo incurs the following costs for the year: cups: $40 sugar: $20 lemons: $150 water: $75 wages for Linda (the friend Leo hires to help him): $400 Recall Leo also uses $100 from his savings account to buy materials to build the stand. He forgoes $5 in interest income that he could have earned if he had left the money in his savings account. Leo could have spent 30 hours mowing lawns at a rate of $15 per hour if he had not been working at his lemonade stand. Leo's economic profit is ______ and his accounting profit is _________. a. $10; $465 b. $465; $10 c. $110; $565 d. $445; $465

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics

Authors: Thomas Pugel

16th Edition

0078021774, 9780078021770

More Books

Students also viewed these Economics questions

Question

What are the competitive advantages in the business model of Wii?

Answered: 1 week ago

Question

=+2 Identify the treatment and response.

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago

Question

The number of people commenting on the statement

Answered: 1 week ago