Fred currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he gets established. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. A law clerk could be hired for $35,000 per year. If these figures are accurate, would Fred’s legal practice be profitable?
Fred currently works for a corporate law firm. He is considering opening his own legal practice, where he expects to earn $200,000 per year once he gets established. To run his own firm, he would need an office and a law clerk. He has found the perfect office, which rents for $50,000 per year. A law clerk could be hired for $35,000 per year. If these figures are accurate, would Fred’s legal practice be profitable?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Fred currently works for a corporate law firm. He is considering opening his own legal
practice, where he expects to earn $200,000 per year once he gets established. To run his own
firm, he would need an office and a law clerk. He has found the perfect office, which rents for
$50,000 per year. A law clerk could be hired for $35,000 per year. If these figures are
accurate, would Fred’s legal practice be profitable?
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