Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is cost and revenue information for Pasquale's Pizza Parlor. Entrepreneur's potential earnings as a salaried worker = $42,000 Annual lease on building =
The following is cost and revenue information for Pasquale's Pizza Parlor. Entrepreneur's potential earnings as a salaried worker = $42,000 Annual lease on building = $30,000 Payments to raw material suppliers = $52,000 Annual revenue from operations = $402,000 Payments to workers = $182,000 Utilities (electricity, water, disposal) costs = $14,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $62,000 Entrepreneur's forgone interest on personal funds used to finance the business = $7,000 Pasquale's implicit costs, including a normal profit, are $275,000. $111,000. $380,000. $30,000
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