Imagine Tom's annual salary as an assistant store manager is $30,000,he owns a building that rents for $10,000 yearly,and his financial assets generate $1,000 per year in interest.One day,after deciding to be his own boss,he quits his job,evicts his tenants,and uses his financial assets to establish a bicycle repair shop.To run the business,he outlays $15,000 in cash to cover all the costs involved with running the business,and earns revenues of $50,000.Tom should:
A) close his shop and go back to what he was doing before with his time and assets, because it was earning him $6,000 more than he's earning now.
B) keep his shop going because he's earning a healthy $35,000 a year.
C) keep his shop going because he's earning $5,000 more than his salary before.
D) None of these is true.
Correct Answer:
Verified
Q74: The larger the implicit costs of a
Q75: In general,economic profits are:
A) greater than accounting
Q76: Imagine Tom's annual salary as an assistant
Q77: Imagine Tom's annual salary as an assistant
Q78: When economic profits are negative,accounting profits could
Q80: When accounting profits are negative,economic profits could
Q81: The relationship between the quantity of inputs
Q82: Marginal product is represented by:
A) the x-axis
Q83: A production function represents:
A)the relationship between the
Q84: ![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents