Consider the following scenario when answering the following two questions. charlie’s churros is a perfectly competitive firm that sells desserts in houston, texas. charlie’s churros currently is taking in $40,000 in revenues and has $15,000 in explicit costs and $25,000 in implicit costs. if charlie’s churros’ profits are computed by the method that accountants use, then they are:

Economic profit = 0

Explanation:

GIVEN DATA

Total revenue = $40,000

explicit costs = $15,000

implicit costs = $25,000

SOLUTION

we know here Economic profit is express as

Economic profit is = Total revenue - ( implicit cost + explicit cost )    1

put here value

Economic profit = $40,000 - ( $25,000 + $15,000)

so

Economic profit = $40,000 - $40,000

so that

Economic profit = 0

the answer is a. $209,000

answer; measurable outcome;