Peters father gave him a construction company with an asset worth $400,000 Peter proudly told to some
Question:
Peter’s father gave him a construction company with an asset worth $400,000 Peter proudly told to some of his fellow directors that his revenues were typically $35,000 per month, while his operating cost for fuel was $8,000 and maintenance $5,000 per month The estimated depreciation was $10,000 per month An office space similar to Peter ‘s office space can be rented for $15,000 per month If Peter was working for one of his competing construction companies, he would have earned $5,000 per month
i List the items that Peter would consider to compute his explicit costs
ii List the items that Peter would consider to compute his implicit costs
iii Compute Peter’s monthly total economic cost
iv Should Peter continue his business? Support your answer with calculations
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt