Suppose your donut shop earns $24,000 in total revenues per month with explicit costs of $12,000 and opportunity costs of $8,000. Your accounting profit is

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Quizplus · Accepted Answer

The accounting profit is calculated by subtracting the explicit costs from the total revenue. So, Accounting profit = Total Revenue - Explicit Costs = $24,000 - $12,000 = $12,000. Opportunity costs are not considered in calculating accounting profit. Therefore, the correct answer is B) $12,000.

Suppose Your Donut Shop Earns $24,000 in Total Revenues Per