1. Jenny is considering starting a new business selling organic groceries. It would cost her $350,000 a...

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1. Jenny is considering starting a new business selling organic groceries. It would cost her $350,000 a year to rent store space and buy the groceries from a wholesaler, and she would have to quit her current job and give up a $70,000 annual salary.

a. What is Jenny’s opportunity cost of starting the business?

b. If Jenny can make an accounting profit of

$50,000 a year selling the organic groceries, should she start the business?

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Microeconomics

ISBN: 9780716759751

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Oct 16, 2024 01:00 AM

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1. Jenny is considering starting a new business selling organic groceries. It would cost her $350,000 a...

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Microeconomics

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