A grocery shop is owned by Mr. Moore and has the following statement of revenues and costs: gnider Revenues noi e dua lesin$250,000 lenignem Supplies Electricity odel bas lesiq $25,000 $6,000 e ods vd -120$75,000 qeri llw Employee salaries Mr. Moore's salary $80,000 Mr. Moore always has the option of closing down his shop and renting out the land for $100,000. Also, Mr. Moore himself has job offers at a local supermarket at a salary of $95,000 and at a nearby restaurant at $65,000. He can only work one job, though. What are the shop's accounting costs? What are Mr. Moore's economic costs? Should Mr. Moore shut down his shop?

A grocery shop is owned by Mr. Moore and has the following statement of revenues and costs: gnider Revenues noi e dua lesin$250,000 lenignem Supplies Electricity odel bas lesiq $25,000 $6,000 e ods vd -120$75,000 qeri llw Employee salaries Mr. Moore's salary $80,000 Mr. Moore always has the option of closing down his shop and renting out the land for $100,000. Also, Mr. Moore himself has job offers at a local supermarket at a salary of $95,000 and at a nearby restaurant at $65,000. He can only work one job, though. What are the shop's accounting costs? What are Mr. Moore's economic costs? Should Mr. Moore shut down his shop?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A grocery shop is owned by Mr. Moore and has the
following statement of revenues and costs:
gnideini
Revenues
edua leoin
$250,000
lanignen
da
$6,000 e odi vd
$75,000 ed liw
vig
Supplies
3w (o Electricity
del bas deaiq $25,000
Employee salaries
Mr. Moore's salary
$80,000
ACu ond
Mr. Moore always has the option of closing down his
shop and renting out the land for $100,000. Also, Mr.
Moore himself has job offers at a local supermarket at a
salary of $95,000 and at a nearby restaurant at $65,000.
He can only work one job, though. What are the shop's
accounting costs? What are Mr. Moore's economic costs?
Should Mr. Moore shut down his shop?

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