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Justin Brimer owns his own taxi. for which he bought a $23.000 permit to operate two years ago. Mr. Brimer earns $35.000 a year operating
Justin Brimer owns his own taxi. for which he bought a $23.000 permit to operate two years ago. Mr. Brimer earns $35.000 a year operating as an independent but has the opportunity to sell the taxi and permit for $85.000 and take a position as dispatcher for Carter Taxi Co. The dispatcher position pays $35.000 a year for a 39-hour week. Driving his own taxi. Mr. Brimer works approximately 48 hours per week. If he sells his business, he will invest the $85.000 and can earn a 15 percent return. Required a. Determine the opportunity cost of owning and operating the independent business. b-1. Calculate the earnings of Justin Brimer operating as an independent. b-2. Calculate the earnings of Justin Brimer working as a dispatcher
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