Two partners who own progressive business solutions which

Assignment Help Macroeconomics

Reference no: EM13374451

Two partners who own Progressive Business Solutions, which currently operates out of an office in a small town near Boston, just discovered a vacancy in an office building in downtown Boston. One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move. The other partner at PBS opposes moving downtown. He argues, "We have already paid for the office stationery, business cards, and a large sign that cannot be moved or sold. We have spent so much on our current office that we can't afford to waste this money by moving now." Evaluate the second partner's advice not to move downtown. Illustrate and fully explain using an example of relevant cost (a cost whose value does affect the optimal decision) and an example of irrelevant cost (a cost whose value does not affect the optimal decision) to the business regarding this decision.

Reference no: EM13374451

Questions Cloud

The bureau of labor statistics showed an astonishing 5 : the bureau of labor statistics showed an astonishing 5 percent gain in productivity in 2001s fourth quarter. some

You have been hired by a new firm selling electronic dog : you have been hired by a new firm selling electronic dog feeders. your client has asked you to gather some data on the

A friend of yours is considering two cell phone service : a friend of yours is considering two cell phone service providers. provider a charges 120 per month for the service

Nbspwith a conclusion answering the following : nbspwith a conclusion answering the following questionsmiddot how are these theories similar to one another?nbspmiddot

Two partners who own progressive business solutions which : two partners who own progressive business solutions which currently operates out of an office in a small town near

You have 2000 the current interest rates on dollar and : you have 2000. the current interest rates on dollar and pound denominated deposits for 180 -day maturity are i 0.02 2

What is the characteristic quality of wildean wit : what is the characteristic quality of wildean wit? demonstrate and explain using evidence and

It is estimated that while world coffee prices hover around : it is estimated that while world coffee prices hover around 50cent per pound production costs are around 80cent per

Construct a production possibilities curve for a : construct a production possibilities curve for a hypothetical country. put public capital goods per year on the

User Account

All Pages