Jim resigns from his job. from which he was earning $40.000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120.000 and the total explicit cost is $60.000. Jim does not want to reveal how much own-savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer not to start his own business. The savings Jim uses to start his business is $ 400.000 300,000 C s00.000 C 1200.000

Jim resigns from his job. from which he was earning $40.000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120.000 and the total explicit cost is $60.000. Jim does not want to reveal how much own-savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer not to start his own business. The savings Jim uses to start his business is $ 400.000 300,000 C s00.000 C 1200.000

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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