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Briefly answer the following questions and explain your answers. a. Four years after graduating from college you must decide if you want to go on as an accountant (your college major) or if you want to make a career change and become a singer. Should the cost of your education matter for your decision after you have graduated from college? b. You have two career options. You can work for someone else for $50,000 a year, or, you can run your own business, with annual revenue of $100,000, and explicit costs of $40,000 annually. Explain which career option a profit-maximizer would select and why. What are the opportunity cost and economic profit of running your own business? (Hint: economic profit takes into account the opportunity cost) c. Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon $50 though he would have paid as much as $80 to go to the show. Simon knows that he can easily sell the Sting ticket on Craigslist for $60. What is his opportunity cost of seeing Coldplay?

Briefly answer the following questions and explain your answers. a. Four years after graduating from college you must decide if you want to go on as an accountant (your college major) or if you want to make a career change and become a singer. Should the cost of your education matter for your decision after you have graduated from college? b. You have two career options. You can work for someone else for $50,000 a year, or, you can run your own business, with annual revenue of $100,000, and explicit costs of $40,000 annually. Explain which career option a profit-maximizer would select and why. What are the opportunity cost and economic profit of running your own business? (Hint: economic profit takes into account the opportunity cost) c. Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon $50 though he would have paid as much as $80 to go to the show. Simon knows that he can easily sell the Sting ticket on Craigslist for $60. What is his opportunity cost of seeing Coldplay?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Questions 4. Briefly answer the following questions and explain your answers. a. Four years after graduating from college you must decide if you want to go on as an accountant (your college major) or if you want to make a career change and become a singer. Should the cost of your education matter for your decision after you have graduated from college? b. You have two career options. You can work for someone else for $50,000 a year, or, you can run your own business, with annual revenue of $100,000, and explicit costs of $40,000 annually. Explain which career option a profit-maximizer would select and why. What are the opportunity cost and economic profit of running your own business? (Hint: economic profit takes into account the opportunity cost) c. Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon $50 though he would have paid as much as $80 to go to the show. Simon knows that he can easily sell the Sting ticket on Craigslist for $60. What is his opportunity cost of seeing Coldplay?
Transcribed Image Text:Questions 4. Briefly answer the following questions and explain your answers. a. Four years after graduating from college you must decide if you want to go on as an accountant (your college major) or if you want to make a career change and become a singer. Should the cost of your education matter for your decision after you have graduated from college? b. You have two career options. You can work for someone else for $50,000 a year, or, you can run your own business, with annual revenue of $100,000, and explicit costs of $40,000 annually. Explain which career option a profit-maximizer would select and why. What are the opportunity cost and economic profit of running your own business? (Hint: economic profit takes into account the opportunity cost) c. Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon $50 though he would have paid as much as $80 to go to the show. Simon knows that he can easily sell the Sting ticket on Craigslist for $60. What is his opportunity cost of seeing Coldplay?
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