Answer:
The economic profits is -$80.
Explanation:
Economic profits is equal to the value of total revenue minus total cost. Here, the total cost includes both explicit as well as implicit costs. Explicit cost here is the cost of seeds. The implicit cost is the opportunity cost of sacrificing 10 hours of guitar lessons.
The explicit cost or cost of seeds is $130.
The implicit cost is $250.
Total costs will be
=Implicit costs+explicit costs
= $250 + $130
= $380
Total revenue earned is $300.
Economic profits will be
=Total revenue- Total costs
=$300-$380
= -$80
