Suppose Juliana Owns a Small Business Making Handbags

question 24

Multiple Choice

Suppose Juliana owns a small business making handbags. Each month she makes 18 handbags, which she sells for $100 each. The materials used to make each handbag cost $50. In addition, Juliana uses a spare room in her house to make the handbags and store her supplies. If she were not using the spare room for her business, she would use it as a guest room, an option that Juliana would value at $250 per month. If Juliana weren't making handbags, she would work at Trader Joe's earning $800 per month. What is Juliana's economic profit each month?

• A)−$150
• B)$900
• C)$650
• D)$750

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Definitions:

Morphogenesis

Emergence of shape in tissues, organs, or the entire embryo during development.

Body Shape

The physical form or structure of a person's body, often described in terms of proportion, distribution of muscle and fat, and skeletal structure.

Gastrulation

A phase early in the embryonic development of most animals, during which the single-layered blastula is reorganized into a multilayered structure known as the gastrula.

Tissue Layer

A group of cells of similar type that work together to perform a specific function within an organism.