PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 8, Problem 2RQ
To determine

The determining factors of employing a new staff.

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Kristi, a pharmacist, is planning on opening her own pharmacy. Kristi Pharmacy is expected to generate yearly revenue of $500,000. Kristi is planning to run the pharmacy herself on full-time basis. Kristi’s alternative employment options are as follows: - Continue to work as a senior medical representative for $50,000 per year. - Accepts a research position in another company for $70,000 per year. Kristi expects to spend $350,000 per year on purchasing drugs and cosmetics for resale to her customers. She will also need to hire three employees: an assistant, an accountant and a custodian, for whom the total salaries to be paid are expected to be $48,000 per year. Kristi owns the building in which her pharmacy is supposed to be; however, she could rent out the pharmacy-store space for $42,000 per year. Calculate Kristi’s accounting profit and economic profit. In your opinion, should Kristi proceed with opening her own pharmacy? Justify your answer.
Kristi, a pharmacist, is planning on opening her own pharmacy. Kristi Pharmacy is expected to generate yearly revenue of $500,000. Kristi is planning to run the pharmacy herself on full-time basis. Kristi’s alternative employment options are as follows: - Continue to work as a senior medical representative for $50,000 per year. - Accepts a research position in another company for $70,000 per year. Kristi expects to spend $350,000 per year on purchasing drugs and cosmetics for resale to her customers. She will also need to hire three employees: an assistant, an accountant and a custodian, for whom the total salaries to be paid are expected to be $48,000 per year. Kristi owns the building in which her pharmacy is supposed to be; however, she could rent out the pharmacy-store space for $42,000 per year. Calculate Kristi’s accounting profit and economic profit. In your opinion, should Kristi proceed with opening her own pharmacy? Justify your answe
Clancy is a 46-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, he took a part-time job but was given only 3 hours of work. options: Employed Not in adult population not in labor force  unemployed    Eileen is a 31-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position.      Hubert is a 41-year-old graphic designer who is taking 2 years off from work to care for his small daughter.      Poornima is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work and interviewing for other editing jobs. She is thinking about going back to grad school if her job search doesn't succeed after a few more weeks.      Manuel is a 17-year-old who just graduated from high school. He is taking it easy this summer, relaxing by the pool with his…
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