What is jenny’s opportunity cost of starting the business

Reference no: EM131336025

Jenny is considering starting a new business selling organic groceries. It would cost her $350,000 a year to rent store space and buy the groceries from a wholesaler, and she would have to quit her current job and give up a $70,000 annual salary.

a. What is Jenny's opportunity cost of starting the business?

b. If Jenny can make an accounting profit of $50,000 a year selling the organic groceries, should she start the business?

Reference no: EM131336025

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