5. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500 000 per year to rent the location and buy the stock. In addition, she would have to quit her $50 000 per year job as an accountant Define opportunity cost a. b. What is your aunt's opportunity cost of running a hardware store for a year? If your aunt thought she could sell $510 000 worth of merchandise in a year, should she open the store? Explain

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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5. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500 000
per year to rent the location and buy the stock. In addition, she would have to quit her $50 000
per year job as an accountant
Define opportunity cost
a.
b. What is your aunt's opportunity cost of running a hardware store for a year? If your aunt
thought she could sell $510 000 worth of merchandise in a year, should she open the store?
Explain
Transcribed Image Text:5. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500 000 per year to rent the location and buy the stock. In addition, she would have to quit her $50 000 per year job as an accountant Define opportunity cost a. b. What is your aunt's opportunity cost of running a hardware store for a year? If your aunt thought she could sell $510 000 worth of merchandise in a year, should she open the store? Explain
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