Consider the following example: Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn $300,000 per year once she gets established. To run her own firm, she will have to give up her current job with a salary of $165,000 and will incur the following annual expenses: 22,490 21,830 Rent Salary-Legal Assistant Computer Software License Office Supplies Internet Subscription 120 800 1,750 How much are Jordan's explicit costs? Number How much is Jordan's accounting profit? Number How much are Jordan's implicit costs? Number How much is Jordan's economic profit? Number Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm: What is the change in Jordan's explicit costs? Number Number What is the change in Jordan's implicit costs?
Consider the following example: Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn $300,000 per year once she gets established. To run her own firm, she will have to give up her current job with a salary of $165,000 and will incur the following annual expenses: 22,490 21,830 Rent Salary-Legal Assistant Computer Software License Office Supplies Internet Subscription 120 800 1,750 How much are Jordan's explicit costs? Number How much is Jordan's accounting profit? Number How much are Jordan's implicit costs? Number How much is Jordan's economic profit? Number Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm: What is the change in Jordan's explicit costs? Number Number What is the change in Jordan's implicit costs?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 14E
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![Consider the following example:
Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn
$300,000 per year once she gets established. To run her own firm, she willI have to give up her current job with a salary of $165,000 and will incur
the following annual expenses:
Rent
22,490
Salary-Legal Assistant
Computer Software License
Office Supplies
21,830
120
800
Internet Subscription
1,750
How much are Jordan's explicit costs?
Number
How much is Jordan's accounting profit? Number
How much are Jordan's implicit costs? Number
How much is Jordan's economic profit? Number
Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm:
What is the change in Jordan's explicit costs? Number
What is the change in Jordan's implicit costs? Number](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5447ead2-ca6e-4052-9989-9e7bc0d4d824%2F66fa3ac3-d544-4db8-8e65-5b930c1ca264%2Fk0kchlb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following example:
Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn
$300,000 per year once she gets established. To run her own firm, she willI have to give up her current job with a salary of $165,000 and will incur
the following annual expenses:
Rent
22,490
Salary-Legal Assistant
Computer Software License
Office Supplies
21,830
120
800
Internet Subscription
1,750
How much are Jordan's explicit costs?
Number
How much is Jordan's accounting profit? Number
How much are Jordan's implicit costs? Number
How much is Jordan's economic profit? Number
Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm:
What is the change in Jordan's explicit costs? Number
What is the change in Jordan's implicit costs? Number
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