Question

The Sweet Success Bakery sells 800 cakes at a price of $20 per cake. Its total economic costs for producing 800 cakes are $4,800. The Sweet Success Bakery's economic profits are A) $4,800. B) $11,200. C) $16,000. D) indeterminate from this information.

Answer 1

Answer:

B) $11,200

Explanation:

Calculation for what The Sweet Success Bakery's economic profits are

Economic profits=(800 cakes*$20 per cake)-$4,800

Economic profits=$16,000-$4,800

Economic profits=$11,200

Therefore The Sweet Success Bakery's economic profits are $11,200