Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him interest rate 10% annually if alternatively invested. He has been offered $15,000 per year to work as a potter for competitor. Total annual revenue from pottery sales is $72,000. Calculate economic cost for Gomez pottery firm Only type answer and give answer fast

Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him interest rate 10% annually if alternatively invested. He has been offered $15,000 per year to work as a potter for competitor. Total annual revenue from pottery sales is $72,000. Calculate economic cost for Gomez pottery firm Only type answer and give answer fast

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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