Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as follows: Labor Food and water Electricity Vehicle lease Rent Interest on loan for equipment Jamal could earn $2,000 per year as a farmer. However, he prefers to run the restaurant. In fact, he would be willing to pay up to $550 per year to run the restaurant rather than to farming. Is the restaurant making an economic profit? Calculate the economic profits? 2. Should Jamal stay in the restaurant business? Explain your answer. $4,000 1000 200 300 1000 2,000
Jamal owns and manages a restaurant in Egypt whose annual revenue is $10,000. Annual expenses are as follows: Labor Food and water Electricity Vehicle lease Rent Interest on loan for equipment Jamal could earn $2,000 per year as a farmer. However, he prefers to run the restaurant. In fact, he would be willing to pay up to $550 per year to run the restaurant rather than to farming. Is the restaurant making an economic profit? Calculate the economic profits? 2. Should Jamal stay in the restaurant business? Explain your answer. $4,000 1000 200 300 1000 2,000
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section7.5: Long-run Production Costs
Problem 1YTE
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