Michael is a regional manager at a paper company. He currently makes $$5,000$ per month and has job security, which he values at $$1,000$ a month, and has spent $14$ years at Dunder Mifflin, which is $$3,000$ in past monthly wages he could have gotten somewhere else.

Recently he has a new boss, Charles, who Michael does not like and Michael is now thinking about starting a new paper company. He talks to an accountant to crunch the numbers, and he expects his new company to have a monthly revenue of $$2,500,$ a monthly cost of $$3,500,$ and the freedom and enjoyment of running his own company, which he values at $$8000$ per month.

Should Michael start a new paper company?

List the relevant benefits for a rational decision$-$maker

List the relevant costs for a rational decision$-$maker

Should he start his own company?