Lawyer working for large law firm and earning

Assignment Help Business Economics
Reference no: EM13893388

Pat, a lawyer working for a large law firm and earning $62,000 per year, is contemplating setting up her own law practice. She estimates that renting an office would cost $11,000 per year; hiring a legal secretary would cost $22,000 per year; renting the required office equipment would cost $13,000 per year; and purchasing the required supplies, and paying for electricity, telephone, and so forth would cost another $5000. The lawyer estimated that her total revenues for the year would be $105,000, and she is indifferent between keeping her present occupation with the large law firm and opening her own office.

a) How much would be the explicit costs of the lawyer for running her own law office for the year?

b) How much would the accounting costs be? The implicit costs? The economic costs?

Reference no: EM13893388

Why are real options important who uses real options

how are companies using real options, what types of options exist, why are real options important, who uses real options, where are real options most appropriately used and

Domestic currency appreciates against foreign? currency

Everything else? equal, when domestic currency appreciates against a foreign? currency: A. the nominal exchange rate goes up. B. there is no change in the real exchange rate.

What is equilibrium wage and equilibrium number of garden

The demand curve for gardeners is Ed = 39 - 2w, where E = the number of gardeners, and w = the hourly wage. The supply curve is Es= 4 + 3w. What is the equilibrium wage and eq

Achieve the solution without using spreadsheet program

If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2,000 every year forever? Assume the 8% per year is a

What is the inflation-adjusted rate of return per year

A friend borrows $1280 today and promises to pay you back $2190 in 5 years. If inflation is expected to be 3.9% per year during this time, what is the inflation-adjusted rate

Economists and market participants so optimistic

The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range

Periodically struck by an epidemic disease

Imagine an island economy that is periodically struck by an epidemic disease that affects only children. From past experience the islanders found that the disease strikes rand

What is total interest paid over the life of loan for plan

Your boss, who never took an engineering economy course is buying a new house and needs your help in answering some questions. The loan amount will be in the "jumbo loan" cate

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd