Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mr X owns and operates a drink stall. his annual revenue is K 200,000 and his costs are K 100,000. if Mr. X was not
Mr X owns and operates a drink stall. his annual revenue is K 200,000 and his costs are K 100,000. if Mr. X was not selling drinks he would play golf instead, which he values at K25,000.00(there are not costs of golf). X wishes to retire to play golf and wants to rent out his stall. calculate the opportunity cost of this option , if any, further , what is the minimum annual rental rate he should ask for, and give reason for answer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started