Question

Bobby decides to sell lemonade on a hot summer day. If Bobby sells 20 glasses of lemonade for $0.20 per cup, and his average total cost is $0.17, what are Bobby's economic profits for the day? a. $0.60 b. $0.00 c. $0.20 d. $0.80

Answer 1

Answer:

Bobby's economic profits for the day is $0.60.

Step-by-step explanation:

Bobby sells 20 glasses of lemonade for $0.20 per cup.

Amount earned = $20\times0.20=4$ dollars

The average total cost is $0.17.

So, difference in selling amount and average = $0.20-0.17=0.03$ dollars

Therefore, Bobby's economic profits for the day is = $20\times0.03=0.60$ dollars

Hence, the answer is $0.60.