7) Sally quit her job as an auto mechanic earning $50,000 per year to start her own busine business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the following information about the first year of her operations. Total revenue $120,000 Cost of labor 40,000 Cost of materials 15,000 Equipment rental 5,000 2. Calculate her economic costs. b. Calculate her accounting costs, c. Calculate her implicit costs. d. Sally tells you that she would really like to move to a location doser to town but she decided against it because "right now I don't pay any rent and it will cost me $10,000 a year to rent near town. "Do you agree with her reasoning? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answer the question. Figure 11-1 Total Product 73 89 42 15 Labor (un 8) Refer to Figure 11-1. In a diagram that shows the marginal product of labor on the vertical axis and labor on the horizontal axis, the marginal product curve 8) A) never intersects the horizontal axis. B) intersects the horizontal axis at a point corresponding to the worker C) intersects the horizontal axis at a point corresponding to the oth workers D) intersects the horizontal axis at a point corresponding to the ath worker. 7) Sally quit her job as an auto mechanic earning $50,000 per year to start her own busine business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the following information about the first year of her operations. Total revenue $120,000 Cost of labor 40,000 Cost of materials 15,000 Equipment rental 5,000 2. Calculate her economic costs. b. Calculate her accounting costs, c. Calculate her implicit costs. d. Sally tells you that she would really like to move to a location doser to town but she decided against it because "right now I don't pay any rent and it will cost me $10,000 a year to rent near town. "Do you agree with her reasoning? MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answer the question. Figure 11-1 Total Product 73 89 42 15 Labor (un 8) Refer to Figure 11-1. In a diagram that shows the marginal product of labor on the vertical axis and labor on the horizontal axis, the marginal product curve 8) A) never intersects the horizontal axis. B) intersects the horizontal axis at a point corresponding to the worker C) intersects the horizontal axis at a point corresponding to the oth workers D) intersects the horizontal axis at a point corresponding to the ath worker