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Ilia_Sergeevich [38]
3 years ago
15

Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per

glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. Refer to Scenario 13-8. What are Wanda’s total economic costs per glass?
Business
1 answer:
vitfil [10]3 years ago
5 0

Answer:

Total economic costs per glass is $0.18.

Explanation:

The total economic costs will include both explicit and implicit costs.

Explicit costs are those which are directly measured, for instance, cost of inputs here.

The implicit costs is the indirect cost. Here opportunity cost is the implicit cost.

Total economic costs

=$(0.01+0.02+0.03+0.02+0.10)

=$0.18

So, the total economic cost is $0.18.

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