Scenario: Betty's Cookie Shop

Essay

Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each.In order to run the business, she employs five people, each of whom worked a total of 500 hours last year; she paid them a wage of
$10 per hour.Her costs of equipment and raw materials add up to $75,000.Her business ability is legendary, and other companies have offered to pay Betty $100,000 if she would come to work for them.She also knows she could sell her cookie shop for $150,000.The bank in town currently pays an annual interest rate of 3% on all funds deposited with it.Assume there is no capital depreciation at this point.
(Scenario: Betty's Cookie Shop) Given the information provided, if Betty is trying to decide at what point she should stop selling cookies and she knows she cannot change the price of a cookie, then she should stop selling cookies if
A.her economic profit is positive.
B.her explicit and implicit costs are less than her revenues.
C.her implicit costs are greater than her economic profits.
D.her economic profit is equal to her accounting profit.