10. The Costs of Production
Revenue, Cost, and Profit
Multiple Choice
Multiple ChoiceRicky Smooth opens up a hunch punch stand in his dorm room every Wednesday for two hours. He spends $40 on ingredients and sells $120 worth of hunch punch. In those same two hours, Ricky could have been a nude model for the art department earning $60. Ricky Smooth has an accounting profit of ________ and an economic profit of ________.
A
Accounting profit = $60; Economic Profit = $20
B
Accounting profit = $80; Economic Profit = $60
C
Accounting profit = $80; Economic Profit = $20
D
Accounting profit = $20; Economic Profit = $80
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