question archive Carmela's Churros is a perfectly competitive firm that sells desserts in Houston, Texas
Subject:MarketingPrice:2.88 Bought3
Carmela's Churros is a perfectly competitive firm that sells desserts in Houston, Texas. Carmela's Churros currently is taking in $40,000 in revenues and has $15,000 in explicit costs and $25,000 in implicit costs. Holding all else constant, the price of churros in this market will:
a. Increase in the long run,
b. Decrease in the long run,
c. Increase in the short run,
d. Decrease in the short run,
e. Stay where it is.
Purchased 3 times