A grocery shop is owned by Mr. Moore and has the following statement of revenues and costs: gnider Revenues noi e dua lesin$250,000 lenignem Supplies Electricity odel bas lesiq $25,000 $6,000 e ods vd -120$75,000 qeri llw Employee salaries Mr. Moore's salary $80,000 Mr. Moore always has the option of closing down his shop and renting out the land for $100,000. Also, Mr. Moore himself has job offers at a local supermarket at a salary of $95,000 and at a nearby restaurant at $65,000. He can only work one job, though. What are the shop's accounting costs? What are Mr. Moore's economic costs? Should Mr. Moore shut down his shop?

A grocery shop is owned by Mr. Moore and has the following statement of revenues and costs: gnider Revenues noi e dua lesin$250,000 lenignem Supplies Electricity odel bas lesiq $25,000 $6,000 e ods vd -120$75,000 qeri llw Employee salaries Mr. Moore's salary $80,000 Mr. Moore always has the option of closing down his shop and renting out the land for $100,000. Also, Mr. Moore himself has job offers at a local supermarket at a salary of $95,000 and at a nearby restaurant at $65,000. He can only work one job, though. What are the shop's accounting costs? What are Mr. Moore's economic costs? Should Mr. Moore shut down his shop?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 2SCQ: Continuing from Exercise 7.1, the films factory sits on land owned by the firm that it could rent...

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