Suppose Juliana owns a small business making handbags. Each month she makes 18 handbags, which she sells for $100 each. The materials used to make each handbag cost $50. In addition, Juliana uses a spare room in her house to make the handbags and store he

The economic profit for Juliana each month can be calculated as follows: Total revenue from selling handbags = 18 handbags x $100 each = $1,800 Total cost of materials used to make handbags = 18 handbags x $50 each = $900 Opportunity cost of using spare room for business = $250 Opportunity cost of not working at Trader Joe's = $800 Total cost for Juliana = $900 + $250 + $800 = $1,950 Total economic profit = Total revenue - Total cost = $1,800 - $1,950 = -$150 Therefore, the answer is d. -$150, which means that Juliana is not making a profit, but rather incurring a loss of $150 each month.