Amanda,aged 6,opens a Lemonade Stand

question 123

Multiple Choice

Amanda,aged 6,opens a lemonade stand.She makes all the lemonade from a mix she found in her parents' pantry.Her stand is an old box she found in the garage.The pitcher and paper cups were taken from the kitchen.Which of the following is true?

• A)The opportunity cost of the lemonade is zero.
• B)The only opportunity cost of the lemonade is Amanda's time.
• C)Amanda's explicit costs are zero.
• D)The implicit costs of Amanda's lemonade are zero.
• E)Whatever revenue Amanda gets will be pure economic profit.

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Definitions:

Standard Deviations

A measure that indicates the amount of variation or dispersion from the average in a set of data.

Geometric Mean

The nth root of the product of n numbers, used especially for sets of positive numbers.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Variance

A measure of variability that describes the spread of a data set or distribution, calculated as the average of the squared differences from the mean.