Curly told Larry about his new business venture: Curly pays Acme International $1,000 per month for supplies, works out of his apartment on his own computer and earns a monthly revenue of $1,500. Should Larry quit his job and do what Curly is doing?
A)Yes, as long as Larry has at least $1,000 in savings to get started.
B)Not if Larry is earning more than $500 per month at his current job.
C)Not unless Larry can borrow the $1,000 monthly payment at no interest.
D)Yes, as long as Larry can work out if his apartment and owns a computer.

Question

Quizplus · Accepted Answer

If Larry is earning more than $500 per month at his current job, then if he did what Curly was doing, his economic profit would be negative.

Curly Told Larry About His New Business Venture: Curly Pays