In 2012, Sid was a law professor and earned $80,000 per year. But he got tired of teaching law students and decided to start his own law firm. He started his firm at the beginning of 2013. Sid’s revenue from his law business in 2013 was $240,000. He cashed in a $70,000 savings bond that was paying him 6% interest per year in order to start his business. He used the entire $70,000 to buy machines, paper, etc. to start up his law business. Sid also hired Donna to work for him part time and paid her a total of $30,000 during 2013. Sid’s other business expenses for 2013 were equal to

In 2012, Sid was a law professor and earned $80,000 per year. But he got tired of teaching law students and decided to start his own law firm. He started his firm at the beginning of 2013. Sid’s revenue from his law business in 2013 was $240,000. He cashed in a $70,000 savings bond that was paying him 6% interest per year in order to start his business. He used the entire $70,000 to buy machines, paper, etc. to start up his law business. Sid also hired Donna to work for him part time and paid her a total of $30,000 during 2013. Sid’s other business expenses for 2013 were equal to

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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