Considers working at the mini golf course just as good

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Jeff runs a mini golf course in Valdosta, Georgia USA. He rents the course and equipment and he himself is the only labor. His monthly earnings after rent is $800, and he considers working at the mini golf course just as good as his alternative of working as a bank teller for $800/month. Jeff learns his uncle has died and left him a $10,000,000 piece of land in New York. Jeff did some research online and found that he could hire a construction company to install and maintain a mini-golf course with equipment for $4000/month. Jeff, who has completed Payap’s Business Statistics and Research course, conducted a market survey and concluded he would earn $16,000/month in revenue by having mini-golf on this land. Jeff knows now that after deducting $4000/mo from the $16,000/mo he would be free and clear of an income of $12,000/month. Assuming cost of living is the same and Jeff enjoys living in both cities the same, he wants to maximize profit, should he switch his operation to New York?

Reference no: EM131253366

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