Holly's Health is a holistic day spa in Beaudesert that is looking to expand. They have recently opened a store in Brisbalie revenue is $5,000/day, with explicit costs of $2,500/day. The opportunity cost of opening the store in this location is considered to be $3,500/day. Which of the following statements are true: According to an economist, Holly's Health were correct in opening a store in Brisbane. The Holly's Health store in Brisbane is not earning a normal profit. The Holly's Health spa in Brisbane is making an accounting profit of $2,500/day. Holly's Health's implicit cost for opening the store in Brisbane is unknown.

Holly's Health is a holistic day spa in Beaudesert that is looking to expand. They have recently opened a store in Brisbalie revenue is $5,000/day, with explicit costs of $2,500/day. The opportunity cost of opening the store in this location is considered to be $3,500/day. Which of the following statements are true: According to an economist, Holly's Health were correct in opening a store in Brisbane. The Holly's Health store in Brisbane is not earning a normal profit. The Holly's Health spa in Brisbane is making an accounting profit of $2,500/day. Holly's Health's implicit cost for opening the store in Brisbane is unknown.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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