Jerome's current job pays $X/yr and provides $Y in benefits like insurance. He can start a business using the$Z he has in the bank earning 1.4% interest. The start-up would have $A in revenue and cost $B/yr for rent,payroll, and materials. What would Jerome's economic profit be if he started this business?A-B-[(X + Y)+(Zx 1.4%)(X+)+(Zx 1.4%)A-BA-B (X + Y)

Approach to solving the question: Detailed explanation: The option that is true for Jerome's…

Answered: Jerome's current job pays $X/yr and…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.2: Two Sides To Every Business Firm

Problem 4ST

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David runs his own business. He received an offer from a company for $50,000 per year. If he sells his business, he can get an amount of $100,000. Assume the annual interest rate is 5%. David is confused to run his own business or join the company. David annual revenue from his business is enough to cover all explicit costs and has $60,000 left over. There are no additional implicit costs. Calculate David’s accounting and economic profit.
Answer d, e, & f only.
How would I find D and E? (Not graded, read file name)
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No plagiarism , solve with details explanation , Otherwise I will give you upvote
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you have been working as a manager of a fashion store. You saved 50,000 and you decided to use the money to start your own business, You decided to use the money you saved to buy materials, you als decided to utilize a store you own to home your business. The store you used for your business could have been rented for 8,000 a year. You hired a clerk to help you in the store that will cost you 20,000 per year. The interest you could have earned on the 50,000 you used to buy the materials was 3,000 per year. Futhermore, you decided to manage your own business and you decided to quit your job that was paying 28,000 per year . You paid 8,000 for utility. What is yor explicit cost? Assume that your total sale for the year was 160,000. What is your implicit cost, what is the accounting profit? what is your economic profit?
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