The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 15

You ask your college for permission to set up a lemonade stand at the annual spring commencement, and the college grants permission. After paying your bills for materials ( lemons, sugar, cups, and so forth), you clear $250 for an afternoon's work.
(a) Did you make a $250 profit?
(b) Are you likely to be given the lemonade concession again next year? What difference does it make whether or not word gets around about how much you cleared?
(c) If the college next year auctions off the franchise, how much would you be willing to bid? Who will then get the profit from the lemonade stand?