Use the Following to Answer Questions

question 21

Multiple Choice

Use the following to answer questions:
Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each. She employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. Her costs of equipment and raw materials add up to $75,000. Her business ability is legendary, and other companies have offered to pay Betty $100,000 to come to work for them. She also knows she could sell her cookie shop for $150,000. The bank in town pays an annual interest rate of 3% on all funds deposited with it.
-(Scenario: Betty's Cookie Shop) Betty is trying to decide at what point she should stop selling cookies, and she knows she cannot change the price of a cookie. She should stop selling cookies if:

• A) her economic profit is positive.
• B) her explicit and implicit costs are less than her revenues.
• C) her implicit costs are greater than her accounting profits.
• D) her economic profit is equal to her accounting profit.

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Definitions:

Adolescence

A transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

12-19 Years

Typically refers to the adolescent developmental stage, characterized by physical, psychological, and emotional changes.

Secondary Sexual Characteristics

Physical features that distinguish the sexes of a species but are not directly involved in reproduction, such as breast development in females and beard growth in males.

Approach Of Puberty

The period in which children's bodies begin to develop and change as they enter sexual maturity.