Orthopedic doctor is considering leaving his hospital job

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An Orthopedic doctor is considering leaving his hospital job and opening his own practice. Assuming that at the hospital the orthopedic doctor makes $50,000 a year. Assume that at his own practice he will make $75,000 a year, and to open his practice, he must convert a house from which he collects rent of $20,000 per year into an office and hire a receptionist at a salary of $15,000 per year. Based only on economic decision making, do you predict the orthopedic doctor will leave the hospital job to start own practice? Why or why not?

Reference no: EM131236968

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