Background information in comments!!!!
a. What is the fixed cost of running this business for one year?
b. What is the marginal cost of selling one set of earrings? Does the marginal cost change depending on quantity sold? If so, how?
c. If Mel’s goal is to maximize economic profit, how many bags does she sell?
d. What is the explicit cost of running this business for one year?
e. What is the implicit cost per year?
f. What is the economic profit of the business, per year?
g. What is the accounting profit, per year?