Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Frank quits his job as a gardener, where he was earning a salary of $40,000 per year, to start a garden consulting business in a

Frank quits his job as a gardener, where he was earning a salary of $40,000 per year, to start a garden consulting business in a building that he owns and that he could otherwise rent out for $18,000 per year. He expects to have the following annual expenses in his new business: equipment and business clothes $5,000, other expenses, $10,000. Frank expects to make annual revenues of 70,000. Find the annual accounting cost and the annual economic cost associated with Frank's garden consulting business. Calculate the annual net economic benefits of his business. From an economic perspective, is it a wise decision to start the business?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The American Economy

Authors: Walter Greason, William Gorman

1st Edition

1524902675, 9781524902674

More Books

Students also viewed these Economics questions

Question

What do you plan on doing upon receiving your graduate degree?

Answered: 1 week ago

Question

=+Identify trends in the social media industry

Answered: 1 week ago