Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product) . If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Suppose that Joe had a long term lease which requires him to pay the rent even if he doesn't operate the store. What should Joe do?
A) Quit immediately.
B) Keep the job permanently.
C) Keep the job until the lease expires.
D) It is impossible to say with the information given in the problem.
Correct Answer:
Verified
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Q3: Which statement is true of the graph
Q4: In a decreasing cost industry, as output
Q5: Say a competitive firm is producing at
Q6: Joe is self-employed in a store that
Q7: At the output where MC = ATC
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A)that has
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