Question

Larry's current job pays $X/yr and provides $Y in benefits like insurance. He can start a business using the $Z he has in the bank earning 1.4% interest. The start-up would have $A in revenue and cost $B/yr for rent, payroll, and materials. What would his opportunity costs be if he started this business? $(X+Y) + (Z \times 1.4\%)$ $A - B - (X + Y) + (Z \times 1.4\%)$ $A - B$ $X + Y$

Name: larrys current job pays xyr and provides y in benefits like insurance he can start a business using the z he has in the bank earning 14 interest the start up would have a in revenue and cost 48189
Uploaded: 2022-03-01T23:59:47-08:00
Duration: 2 min 1 s
Channel: Doris Bennett
Description: larrys current job pays xyr and provides y in benefits like insurance he can start a business using the z he has in the bank earning 14 interest the start up would have a in revenue and cost 48189

          Larry's current job pays $X/yr and provides $Y in benefits like insurance. He can start a business using the $Z he has in the bank earning 1.4% interest. The start-up would have $A in revenue and cost $B/yr for rent, payroll, and materials. What would his opportunity costs be if he started this business?
$(X+Y) + (Z \times 1.4\%)$
$A - B - (X + Y) + (Z \times 1.4\%)$
$A - B$
$X + Y$

larrys current job pays xyr and provides y in benefits like insurance he can start a business using the z he has in the bank earning 14 interest the start up would have a in revenue and cost 48189

Added by Anne H.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Doris Bennett

03/01/2022

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In this case, Larry is choosing to start a business instead of keeping his current job. Show more…

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Larry's current job pays $X/yr and provides $Y in benefits like insurance. He can start a business using the $Z he has in the bank earning 1.4% interest. The start-up would have $A in revenue and cost $B/yr for rent, payroll, and materials. What would his opportunity costs be if he started this business? $(X+Y) + (Z \times 1.4\%)$ $A - B - (X + Y) + (Z \times 1.4\%)$ $A - B$ $X + Y$