How is economic cost calculated from the following problem
2. Alex’s salon hires you to determine the company’s status. The data below provides information on the company’s annual cost and revenues
Wages $25,000
Interest paid on loans $30,00
Other Expenditures for factors of production $31,000
Total Revenue $90,000
I. Alex spends 40 hrs a week at her place of business, if she closes her business , she could work for her competitor and earn $115,000 per year. She could also rent her business house salon for $18,000 if she closes her salon business.
2. Alex’s salon hires you to determine the company’s status. The data below provides information on the company’s annual cost and revenues
Wages $25,000
Interest paid on loans $30,00
Other Expenditures for factors of production $31,000
Total Revenue $90,000
I. Alex spends 40 hrs a week at her place of business, if she closes her business , she could work for her competitor and earn $115,000 per year. She could also rent her business house salon for $18,000 if she closes her salon business.
