Amanda, Age 6, Opens a Lemonade Stand

Multiple Choice

Amanda, age 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.