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Anything helps thanks! You begin providing the entrepreneurial ability to your new firm by making some initial organizational decisions. You decided to open your own
Anything helps thanks!
You begin providing the entrepreneurial ability to your new firm by making some initial organizational decisions. You decided to open your own small pizza business by quitting a job of $44,000 a year at OCCC. You decide that your new pizza shop will occupy a small retail space that you own and had been previously renting out for $10,000 per year. After a year in business, you total up your accounts and find that you made monetary payments of $126,000 for the business. Suppose you sold 17,200 pizzas over the year at an average price of $10 each. Questions: (1) What were your total explicit costs over the course of the year? (2) What were your total implicit costs over the course of the year? (3) What were your total economic costs over the course of the year? (4) What was your total revenue last year? (5) What was your accounting profit last year? (6) What was your economic profit last year? (7) If demand for your pizza stays at its current level, should you continue to operate your pizza shop or go back to OCCC for the same job if they offer it back to you for the same pay? (8) What is zero economic profit? If a firm makes zero economic profit in the long run, should it be closing the business Step by Step Solution
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