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Question
Use the following scenario to answer the following questions:
Carmelas Churros is a perfectly competitive firm that sells desserts in Houston, Texas. Carmelas Churros currently is taking in $40,000 in revenues, and has $15,000 in explicit costs and $25,000 in implicit costs.
Carmelas Churros accounting profits are
a. $40,000.
b. $15,000.
c. $25,000.
d. $0.
e. $80,000.
Answer
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