What were carolines implicit costs in her new job

Reference no: EM13213583

Caroline received a $1 million payment from a lottery ticket. She decided to use the money to purchase a cupcake business. If Caroline had invested the $1 million in a money market account, she would have made $30,000 in interest each year. Caroline quit her job as a waitress in order to devote all her time to making profit in her new business. As a waitress, she earned $35,000 a year.

a) What were Caroline's implicit costs in her new job?

b) At the end of year, Caroline's economist reports that she made zero economic profits. How large were Caroline's accounting profits?

Reference no: EM13213583

Questions Cloud

Stakeholder influences and interconnections : Briefly describe what globalization means to you, to your company or organization, and to Canada using the principles of the Circle of Reflection. List influences that you believe it will have on stakeholders.

Identify the key players in this case : Identify the key players in this case. Describe each player’s role and their relationship to each other. Describe the IS management position(s) that were missing at Clarion and suggest candidate(s) to fill the roles.

What proportion of the total variation in sales is explained : cascade pharamacreuticals company developed the following regression model, using time-series data from the past 33 quaters, for for one of its nonprescription cold remedies: y=-1.04 + 0.24X1 - 0.27X2 Where Y = quarterly sales (in thousands pf cas..

Design database to keep track of information for art museum : Design a database to keep track of information for an art museum. The museum has many art objects. Each art object has a unique number, title, year, description and information about the author it was created by.

What were carolines implicit costs in her new job : Caroline received a $1 million payment from a lottery ticket. She decided to use the money to purchase a cupcake business. If Caroline had invested the $1 million in a money market account, she would have made $30,000 in interest each year.

Different real-world problems : Choose two different real-world problems you have encountered. The problems should be chosen with the intention of applying persuasive thinking as a solution to one and scientific thinking as a solution to the other.

Would people be willing to make a large sacrifice to help : Charles decides to go to an operabecause he does not want to waste the $100 he spent on the nonrefundable and nontransferable opear ticket, despite the fact that he would prefer to forgo the opera and go to a concert with Bette on the same night.

Analyze the principal objectives of punishment : Which you analyze the principal objectives of punishment within the U.S. corrections system. What are the state and federal objectives of punishment?

Discuss the ambiguous role of the catholic church : Discuss the ambiguous role of the Catholic Church in Spain’s colonial project in Latin America. How did the church both serve and challenge the priorities of Spanish officials and settlers?

User Account

All Pages