Answer:
Accounting profit is $13,000.
Explanation:
Given information:
Total Revenues = $20,000
Explicit costs = $7,000
Implicit costs = $5,000
The formula for accounting profit is
Accounting profit = Total revenues - Explicit costs
Substitute the given values in the above formula.
Accounting profit = $20,000 - $7,000
= $13,000
Therefore, the accounting profit is $13,000.
