Advanced Placement (AP), 09.03.2020 03:52, melissapulido198
Kieran owns and operates his own bike shop. In the past week, he received two offers: one to work for a competitor for $50,000 per year and one to sell his bike shop for $100,000. Assume the annual interest rate is 6 percent, and Kieran is indifferent between owning his bike shop or working for the competitor. Kieran currently receives enough annual revenue to cover all explicit costs and has $60,000 left over. There are no additional implicit costs (excluding the items listed above). Under these circumstances, Kieran's economic profit is equal to which of the following?A. −$96,000B. −$90,000C. $4,000D. $10,000E. $60,000
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Kieran owns and operates his own bike shop. In the past week, he received two offers: one to work fo...
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