pTork teaches guitar lessons in the guitar store, where he makes $32,000 per ESrear (which we can think of being paid out at the end of each year). He coul neasily repurpose his skills to become a music teacher in the public schools, but doing so would require him to get a master's degree. Starting a master's program today would cost $24,000 immediately and $24,000 one year from now in tuition, and takes two full years to complete. If Tork gets his degree, he'll work in the public schools for 30 years thereafter and get $41,000 per year (paid at the end of the year). Otherwise, Tork will stay at his current jo for the next 32 years. Should Tork get his master's? You may evaļuate the
pTork teaches guitar lessons in the guitar store, where he makes $32,000 per ESrear (which we can think of being paid out at the end of each year). He coul neasily repurpose his skills to become a music teacher in the public schools, but doing so would require him to get a master's degree. Starting a master's program today would cost $24,000 immediately and $24,000 one year from now in tuition, and takes two full years to complete. If Tork gets his degree, he'll work in the public schools for 30 years thereafter and get $41,000 per year (paid at the end of the year). Otherwise, Tork will stay at his current jo for the next 32 years. Should Tork get his master's? You may evaļuate the
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.5IP
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