Your aunt is thinking about opening a hardware store. She estimates that it would cost$500,000 per year to rent the location and buy the stock. In addition, she would have to quither $50,000 per year job as an accountant. What is your aunt's opportunity cost of running the hardware store for a year? If your auntthinks she can sell $510,000. Worth of merchandise in a year, should she open the store?Explain?

Opportunity cost is the cost of next best alternative available to the consumer or it is the cost of…

Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant.

Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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