A Potential Entrepreneur Is Trying to Decide Whether to Open

question 90

Essay

A potential entrepreneur is trying to decide whether to open a new health spa.She currently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new health spa.If she chooses to open the spa,it will cost her $200,000 per year in rent and other operating expenses.
a.What are her accounting costs?
b.What are her opportunity costs?
c.How much would she need to make in revenues to earn positive accounting profits?
Positive economic profits?

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Definitions:

Psychological Disorders

Mental disorders that significantly affect one's thinking, emotional state, and behavior, disrupting daily functioning.

Humane Treatments

Actions or practices that show compassion and respect towards others, including animals, often in contexts that could permit harshness.

Childhood Feelings

Emotions or affective responses experienced during one's childhood years.

Client-Centered Therapy

A humanistic therapy, developed by Carl Rogers, in which the therapist uses techniques such as active listening within an accepting, genuine, empathic environment to facilitate clients’ growth. (Also called person-centered therapy.)