What is my opportunity cost

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Reference no: EM131387961

1- Suppose I want to open my own restaurant. Currently I am working as a financial Analyst at a top back earning $175,000 a year, which I will have to quit to open a restaurant. I AM also going to invest $100,000 of my savings which were earing an average annual rate of 6%. What is my opportunity cost. ( implicit cost ) of opening the restaurant.

2- Suppose you can hire 10 workers for $12 each, but to hire the 1 worker you will have to pay all your workers $15 each. What is marginal cost of hiring the 11th worker.

3- in these two cases , you can use any example

a) explain what would happen to prices in a market equilibrium if there is an increase in the demand for a product give an example of a real life situation

b) explain what would happen to prices in a market equilibrium if there is an increase in the supply for a product give an example of a real life situation.

Reference no: EM131387961

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