11 Suppose Jill Johnson operates her pizza restaurant in a building she owns in the center of the city. Similar build- ings in the neighborhood rent for $4,000 per month. Jill is considering selling her building and renting space in the suburbs for $3,000 per month, but she decides not to make the move. She reasons: "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3,000 per month." Evaluate Jill's reasoning.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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11 Suppose Jill Johnson operates her pizza restaurant in a
building she owns in the center of the city. Similar build-
ings in the neighborhood rent for $4,000 per month. Jill is
considering selling her building and renting space in the
suburbs for $3,000 per month, but she decides not to make
the move. She reasons: "I would like to have a restaurant
in the suburbs, but I pay no rent for my restaurant now,
and I don't want to see my costs rise by $3,000 per month."
Evaluate Jill's reasoning.
Transcribed Image Text:11 Suppose Jill Johnson operates her pizza restaurant in a building she owns in the center of the city. Similar build- ings in the neighborhood rent for $4,000 per month. Jill is considering selling her building and renting space in the suburbs for $3,000 per month, but she decides not to make the move. She reasons: "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3,000 per month." Evaluate Jill's reasoning.
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