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Terri's Twinkle bakes fresh pastries every morning. Any pastry not sold by the end of the day is thrown away. A pastry costs Terri $0.25

Terri's Twinkle bakes fresh pastries every morning. Any pastry not sold by the end of the day is thrown away. A pastry costs Terri $0.25 to produce and the bank charges her $0.10 per Twinkle processing fee for each sale. She prices them at $0.50 each. Suppose near the end of one day Terri still has 12 pastries on hand. Which of the following is correct? (Hint: you should focus on opportunity costs and ignore any dynamic effects - the effect on tomorrow's sales or on consumer's expectations of future prices.)

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