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Harry's Hookahs Incurs $700,000 Per Year in Explicit Costs and $500,000

question 298

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Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs.The company earns $1.4 million in revenues and has $3.7 million in net worth.Based on this information,what is the economic profit for Harry's Hookas?


Definitions:

Methanol

A light, volatile, colorless liquid with a distinctive alcoholic odor, used as an antifreeze, solvent, fuel, and as a denaturant for ethanol.

Ka

An abbreviation for acid dissociation constant, a quantitative measure of the strength of an acid in solution, representing the equilibrium constant of its dissociation.

Conjugate Acid

A species formed by the reception of a proton (H+) by a base, related to its conjugate base by the difference of one hydrogen atom.

Ethanol

A two-carbon alcohol, commonly known as alcohol, with the chemical formula C2H5OH, used as a solvent, fuel, and in beverages.

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