Don Juan Perez runs a seafood restaurant. His total income last year was $150,000. The rent was US$48,000 per year. His labour costs were $42,000 and materials, food and other variable costs were $20,000. Don Juan Perez was going to write a cookbook where he would have earned $40,000 per year, or as a chef de cuisine in another restaurant, where he would have earned $35,000. The economic utility of Don Juan Perez is: (a) 0 (zero) per year b) 5,000 dollars a year c) -$35,000 per year d) $40,000 per year
Don Juan Perez runs a seafood restaurant. His total income last year was $150,000. The rent was US$48,000 per year. His labour costs were $42,000 and materials, food and other variable costs were $20,000. Don Juan Perez was going to write a cookbook where he would have earned $40,000 per year, or as a chef de cuisine in another restaurant, where he would have earned $35,000. The economic utility of Don Juan Perez is: (a) 0 (zero) per year b) 5,000 dollars a year c) -$35,000 per year d) $40,000 per year
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 3.3IP
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Don Juan Perez runs a seafood restaurant. His total income last year was $150,000. The rent was US$48,000 per year. His labour costs were $42,000 and materials, food and other variable costs were $20,000. Don Juan Perez was going to write a cookbook where he would have earned $40,000 per year, or as a chef de cuisine in another restaurant, where he would have earned $35,000. The economic utility of Don Juan Perez is:
(a) 0 (zero) per year
b) 5,000 dollars a year
c) -$35,000 per year
d) $40,000 per year
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