Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as follows: Labor Food and water Electricity Vehicle lease Rent Interest on loan for equipment Jamal could earn $2,000 per year as a farmer. However, he prefers to run the restaurant. In fact, he would be willing to pay up to $550 per year to run the restaurant rather than to farming. Is the restaurant making an economic profit? Calculate the economic profits? 2. Should Jamal stay in the restaurant business? Explain your answer. $4,000 1000 200 300 1000 2,000

Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as follows: Labor Food and water Electricity Vehicle lease Rent Interest on loan for equipment Jamal could earn $2,000 per year as a farmer. However, he prefers to run the restaurant. In fact, he would be willing to pay up to $550 per year to run the restaurant rather than to farming. Is the restaurant making an economic profit? Calculate the economic profits? 2. Should Jamal stay in the restaurant business? Explain your answer. $4,000 1000 200 300 1000 2,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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