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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

Respuesta :

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 = [tex]20\times0.20=4[/tex] dollars

The average total cost is $0.17.

So, difference in selling amount and average = [tex]0.20-0.17=0.03[/tex] dollars

Therefore, Bobby's economic profits for the day is = [tex]20\times0.03=0.60[/tex] dollars

Hence, the answer is $0.60.