12:14 64 PROBLEM SET # 6. . . " Bob's Burger Box has been operating continuously since 1982. The origin Investment was $100,000 , but the business is worth a lot more today. In fact, Bob's chief competitor would like to buy him out and and has . lau standing offer of $1 million anytime that Bob wants to sell. He is willing to hire Bob for $50,000 per year if Bob sells out. Bob has been tempted because he figures that he could earn 10% on the $ 1 million if he invests it wisely. You need to help him decide. Currently, Bob figures that he is earning a profit of $100,000 per year based on the following information: Total Revenue : $200, 000 ( from 100,000 hamburgers @ $2.00) Total Money Outlays: $100,000 (wages paid, materials , rent) a) What are his explicit (accounting ) costs? b) What are his implicit costs? c) What is his total economic (opportunity) cost? d) If his goal is to maximize profit, should he stay in business or sell out s he earning any money? Would an accountant and an economist give the same answer to the question about how much he is earning? e) Would it effect your answer to (b) above if he inherited the business in business? his uncle, and therefore had no money of his own invested in the Show transcribed data The problem has been solved! See the answer O