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Consider a woman was working for certain private enterprise and earning Birr 10,000 per month. Currently she started her own business with a capital of
Consider a woman was working for certain private enterprise and earning Birr 10,000 per month. Currently she started her own business with a capital of Birr 250,000, which was from her own savings. She used her own house as an office, which was rented for Birr 2500. Assume interest on saving is 8%. At the end of the year, her sales were Birr 450,000 and her total costs were Birr 230,000 A,Business profit of the individual B,Implicit cost and economic profit C,Is her decision of starting the new business a rational decision? Why or why not?
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