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Which of the following is an example of the systematic bias of being overconfident? O Derek thinks he has a high chance of getting an
Which of the following is an example of the systematic bias of being overconfident? O Derek thinks he has a high chance of getting an A for ECON 302 O Himari plans to study for the test on Thursday, but then spends the whole day playing Nintendo O. Seeing others are studying hard at the library, John decides to close his YouTube tab and studies for Econ 302. O Linda keeps her money in specific account for specific purposes Katrina owns a tea shop. Last year, despite the pandemic, her store generated $550,000 in total revenue. The supplies necessary for the store totaled $80,000. She paid $150,000 to her three employees and a salary of $65,000 to herself. The rent and utilities on her building were $60,000. Katrina always had the option of closing her tea shop and renting out her building for $85,000 per year. In addition, Katrina received an offer to manage a restaurant at a salary of $100,000. She also received a $120,000 offer to manage the Bay Area Tea Association. Katrina can only work one job. 1. What is Katrina's accounting cost? Her accounting profit? (10 points) 2. What is Katrina's economic cost? Her economic profit? (10 points) 3: Compare what Katrina earns in her current job (both her salary and her shop's accounting profit) to her best outside offer. Should she take the job or just keep her current store? (5 points) (Show your work)
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