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Xavier opens up a lemonade stand for two hours. He spends $10 for ingredients and sells $60 worth of lemonade. In the same two hours, he could have mowed his neighbor’s lawn for $40. Xavier earns an accounting profit of _________ and an economic profit of _________. a. $50; $10 b. $90; $50 c. $10; $50 d. $50; $90

Chapter 13, Problem 2

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QUESTION:

Xavier opens up a lemonade stand for two hours. He spends $10 for ingredients and sells $60 worth of lemonade. In the same two hours, he could have mowed his neighbor’s lawn for $40. Xavier earns an accounting profit of _________ and an economic profit of _________.

a. $50; $10

b. $90; $50

c. $10; $50

d. $50; $90

Questions & Answers

QUESTION:

Xavier opens up a lemonade stand for two hours. He spends $10 for ingredients and sells $60 worth of lemonade. In the same two hours, he could have mowed his neighbor’s lawn for $40. Xavier earns an accounting profit of _________ and an economic profit of _________.

a. $50; $10

b. $90; $50

c. $10; $50

d. $50; $90

ANSWER:

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Xavier opens up a lemonade stand for two hours. He spends $10 on ingredients and sells $60 worth of lemonade. He could have mowed his neighbor’s lawn for $40 in the same two hours.

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