Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Discover in-depth solutions to your questions from a wide range of experts on our user-friendly Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

You are considering opening a small flower store. You anticipate that you will earn $100,000 each year in revenue. It will cost you $30,000 each year to rent the space necessary to run your business. Additionally, you will need to spend $10,000 each year on flower seeds, utilities, and other expenses necessary to operate your flower shop. You have just graduated from college with a degree in economics and have received an offer to work for a firm with a yearly salary of $70,000.
What is your anticipated economic profit of opening the flower shop?
Based on this information, you ________ open the flower store.

Sagot :

anthougo

1. The anticipated economic profit for opening the flower shop is $130,000.

2. Based on the information, you should not open the flower store.

Data and Calculations:

Annual revenue = $100,000

Rent expense = $30,000

Cost of goods and others = $10,000

Accounting income = $60,000

Opportunity cost = $70,000

Economic loss = ($10,000) ($60,000 - $70,000)

Anticipated economic profit = $130,000 ($60,000 + $70,000)

Thus, the opening of the flower shop will produce an economic loss for the entrepreneur.

Learn more: https://brainly.com/question/15134203

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.