John is the owner of “Down Town Pizza & Salad Bar” (NY). At the end of the year, John has the following information: Total Revenue = $290,000. Wages = $58,000, rent = $28,000, material & ingredients = $46,000, and utilities = $12,000. Also, Pizza Hut just offered him a job earning of $78,000. John invested $32,000 of his own savings in a new industrial oven. The oven at the end of the year can be sold at $18,000. The interest rate at the end of the year is 3.2%. According to this information, economic profits = $__
John is the owner of “Down Town Pizza & Salad Bar” (NY). At the end of the year, John has the following information: Total Revenue = $290,000. Wages = $58,000, rent = $28,000, material & ingredients = $46,000, and utilities = $12,000. Also, Pizza Hut just offered him a job earning of $78,000. John invested $32,000 of his own savings in a new industrial oven. The oven at the end of the year can be sold at $18,000. The interest rate at the end of the year is 3.2%. According to this information, economic profits = $__
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.14P
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John is the owner of “Down Town Pizza & Salad Bar” (NY). At the end of the year, John has the following information: Total Revenue = $290,000. Wages = $58,000, rent = $28,000, material & ingredients = $46,000, and utilities = $12,000. Also, Pizza Hut just offered him a job earning of $78,000. John invested $32,000 of his own savings in a new industrial oven. The oven at the end of the year can be sold at $18,000. The interest rate at the end of the year is 3.2%. According to this information, economic profits = $__
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