has decided to quit her corporate job and live her dream by opening up her own food truck selling her "famous" tacos. She expects to earn $90,000 per year once she gets a loyal following. To run her business, she will need to get a food truck, equipment, and a license. The food truck will cost her $800 per month to lease, equipment rentals are $150 per month and an annual license is $300. Sara will also be taking a large pay cut to follow her dream. Her corporate job's annual salary is $100,000 annually. What is Sara's economic profit?

has decided to quit her corporate job and live her dream by opening up her own food truck selling her "famous" tacos. She expects to earn $90,000 per year once she gets a loyal following. To run her business, she will need to get a food truck, equipment, and a license. The food truck will cost her $800 per month to lease, equipment rentals are $150 per month and an annual license is $300. Sara will also be taking a large pay cut to follow her dream. Her corporate job's annual salary is $100,000 annually. What is Sara's economic profit?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter22: Getting Divisions To Work In The Firm’s Best Interests

Section: Chapter Questions

Problem 22.3IP

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