Harvey Quit His Job at State University, Where He Earned

question 326

Multiple Choice

Harvey quit his job at State University, where he earned $58,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $8,000 a year. To start the business, he cashed in $60,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 15,000 units of software at $60 for each unit. Of the $60 per unit, $50 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.The implicit costs of Harvey's firm in the first year were

• A)$150,000.
• B)$72,000.
• C)$78,000.
• D)$900,000.

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Definitions:

Schema

A cognitive framework or concept that helps organize and interpret information from the world.

Robinson and Swanson

Robinson and Swanson may refer to researchers or a collaborative project, specific details of which would be based on the context in which they are mentioned, as no definitive information is provided.

Distinctively

In a way that is characteristic of a specific person, thing, or group and sets it apart from others.