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Assume that you are a budding chef, and you want to change careers to run a gourmet food truck - the job of your dreams. You use Chapter 7 from Everything Economics as a guide to help you to decide whether to quite your current job. Assume that your current job pays $16,000 per year. Answer the questions below.
1. What types of items would make up your fixed costs? Assume that these total $6,000 per year.
2. What types of items would make up your variable costs? Assume that these total $8,000 per year.
3. What is your opportunity cost?
3. Assume a total sales revenue of $24,000 - what is your accounting profit?
4. What is your economic profit?
5. Will you quit your job to start running the food truck?
6. What other decision factors are left out of this problem?
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