Xavier opens up a temonade stand for two hours. He spends \( \$ 10 \) for ingredients and sells \( \$ 60 \) worth of lemonade. In the same two hours, he could have mowed his neighbor's lawn for \( \$ 40 \). Xavier earns an accounting profit of \( \qquad \) and an economic profit of \( \qquad \) A) \( \$ 50 ; \$ 10 \) B) \( \$ 90 ; \$ 50 \) C) \( \$ 10 \); \( \$ 50 \) D) \$50; \$90

To calculate the accounting profit and economic profit, we start with the facts given: - Revenue from lemonade sales: \( \$ 60 \) - Cost of ingredients: \( \$ 10 \) **Accounting Profit**: This is calculated by subtracting explicit costs from total revenue. \( \text{Accounting Profit} = \text{Revenue} - \text{Costs} = 60 - 10 = \$ 50 \) **Economic Profit**: This considers both explicit and implicit costs. The implicit cost here is the opportunity cost of not mowing the neighbor's lawn, which is \( \$ 40 \). \( \text{Economic Profit} = \text{Revenue} - (\text{Explicit Costs} + \text{Implicit Costs}) = 60 - (10 + 40) = 60 - 50 = \$ 10 \) So, putting it all together, the correct answer is: A) \( \$ 50; \$ 10 \)