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Chapter 9 answer key

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Subject: 
Algebra
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Solution Making Decisions 1. Hiro owns and operates a small business that provides economic consulting services. During the year he spends $55,000 on travel to clients and other expenses, and the computer that he owns depreciates by $2,000. If he didn?t use the computer, he could sell it and earn yearly interest of $100 on the money created through this sale. Hiro?s total revenue for the year is $100,000. Instead of working as a consultant for the year, he could teach economics at a small local college and make a salary of $50,000. a. What is Hiro?s accounting profit? b. What is Hiro?s economic profit? c. Should Hiro continue working as a consultant, or should he teach economics instead? 1. a. Hiro?s accounting profit is: $100,000 (total revenue)

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