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Bonzo Is in Business for Himself Making and Selling Easter

Question 68

Multiple Choice

Bonzo is in business for himself making and selling Easter baskets.His daily cost for wicker is $100 and his daily revenue is $120.Bonzo quit his job at the Basket Weaving factory where he earned $15 a day,to enter the Easter basket business.Given this information,we know that his accounting profit


A) is $120 and his economic profit is $105.
B) and economic profit are both $20.
C) is $20 and his economic profit is $5.
D) and economic profit are both $5.

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