Sonja owns a business that pays her a salary of $50,000 plus the potential for future profits.She is considering an offer for a top management position with another firm at a salary of $75,000 per year.
A) She should accept the management position because she would earn more income with the other firm.
B) She should refuse the management position because,despite the higher salary,the future profits from her current business will be greater.
C) A cost-benefit analysis of her decision should include an opportunity cost of $75,000.
D) A cost-benefit analysis of her decision should not include an opportunity cost of $75,000 because her current salary plus future profits could be greater than the salary offered by the other firm.
E) A cost-benefit analysis of her decision should include an average cost of $75,000.
Correct Answer:
Verified
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