Along with your textbook readings, review the articles and videos below to explore the role of opportunity cost in business decision-making. Then respond to the questions based on the scenario presented. Your mother owns and runs an arts and craft store and the business is doing well. She would have otherwise been employed as a high school geography teacher making $80,000 a year or as an interior decorator making $68,000 a year. She owns the building in which her shop is located, which she could have rented out for $24,000 a year. Her annual revenue from the shop is $430,000 and she employs four workers, each of whom earns $30,000 a year. On average, she spends $206,000 per year traveling, purchasing, and shipping unique merchandise for resale at her store. Based on this information, do you think you should encourage her to return to teaching? Explain by discussing her opportunity costs, her accounting profit, and her economic profit (and show your calculations).
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Along with your textbook reading, review the magazines and article below for a background on the concept of diminishing marginal utility, as demonstrated by all-you-can-
Transcribed image text: Along with your textbook readings, review the articles and videos below to explore the role of opportunity cost in business decision making Then respond to the questions based on the scenario presented. Your mother owns and runs an arts and craft store and the business is doing well. She would have otherwise been employed as a high school geography teacher making $80,000 a year or as an interior decorator making $68,000 a year. She owns the building in which her shop is located, which she could have rented out for $24,000 a year. Her annual revenue from the shop is $430,000 and she employs four workers, each of whom earns $30,000 a year. On average she spends $200,000 per year traveling. purchasing, and shipping unique merchandise for resale at her store Based on this information, do you think you should encourage her to return to teaching? Explain by discussing her opportunity costs, her accounting profit, and her economic profit (and show your calculations), 11
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