George and KC have been working jobs that pay $60,000 and $30,000 per year, respectively. They are

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George and KC have been working jobs that pay $60,000 and $30,000 per year, respectively. They are trying to decide whether to quit their jobs and jointly open up a taco stand on the beach, which they estimate can earn $150,000 per year. How will the taco stand proceeds be split?

a. They won’t quit their jobs.

b. George gets $90,000 and KC gets $60,000.

c. George gets $75,000 and KC gets $75,000.

d. George gets $100,000 and KC gets $50,000.

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Managerial Economics

ISBN: 9781337106665

5th Edition

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

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