Question
This past year, Noah sold 50,000 ice cream cones at a price of $2.00 each. His only costs were from ingredients, for which he paid
This past year, Noah sold 50,000 ice cream cones at a price of $2.00 each. His only costs were from ingredients, for which he paid $25,000 in total. At the beginning of the year, Noah was offered a position at the pet store that would pay $90,000 for the year. Which of the following pairs represent Noah's accounting and economic profits for working at the ice cream stand?
Accounting profit = $100,000; Economic profit = $75,000
Accounting profit = $75,000; Economic profit = $90,000
Accounting profit = $75,000; Economic profit = $10,000
Accounting profit = $75,000; Economic profit = -$15,000
Accounting profit = $100,000; Economic profit = -$25,000
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