Sheena quit her job teaching art at the high school and is now an artist who operates an art studio where she produces and sells art. She earned a salary of $57,475 as a teacher. She took out $100,000 in savings that she had been earning 5% interest on. Her rent for the studio is $20,000, she spends $40,000 on supplies and $10,214 on utilities. Whether she is a teacher or an artist she spends $2,000 on clothing each year. What is her total cost (both explicit costs and opportunity cost) of being an artist?
Sheena quit her job teaching art at the high school and is now an artist who operates an art studio where she produces and sells art. She earned a salary of $57,475 as a teacher. She took out $100,000 in savings that she had been earning 5% interest on. Her rent for the studio is $20,000, she spends $40,000 on supplies and $10,214 on utilities. Whether she is a teacher or an artist she spends $2,000 on clothing each year. What is her total cost (both explicit costs and opportunity cost) of being an artist?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sheena quit her job teaching art at the high school and is now an artist who operates an art studio where she produces and sells art. She earned a salary of $57,475 as a teacher. She took out $100,000 in savings that she had been earning 5% interest on. Her rent for the studio is $20,000, she spends $40,000 on supplies and $10,214 on utilities. Whether she is a teacher or an artist she spends $2,000 on clothing each year. What is her total cost (both explicit costs and opportunity cost ) of being an artist?
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