Answer
A. 50, 10
Work Step by Step
Accounting profit measure only explicit cost.
= Total Revenue-Explicit Cost
Economic profit measures explicit and implicit cost.
= Total Revenue-Explicit Cost-Implicit Costs
The opportunity cost of not being able to make 40 dollars mowing his neighbors lawn is an implicit cost.
The explicit cost was the 10 dollars of supplies for the lemonade stand
Raj's revenue was 60 dollars from the lemonade stand.
Accounting profit
60-10=50
Economic profit
60-10-40=10
