The Cakery Bakery sells 200 muffins at a price of $2 per muffin. Its explicit costs for producing 200 muffins are $350. The cakery bakery's economic profits are

A) $35.
B) $50.
C) $400.
D) indeterminate from this information.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenue.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for a business to operate.