Suppose jill johnson operates her pizza restaurant in a building she owns in the center of the city. similar buildings in the neighborhood rent for $4,000 per month. jill is considering selling her building and renting space in the suburbs for $3,000 per month. jill decides not to make the move. she reasons, "i would like to have a restaurant in the suburbs, but i pay no rent for my restaurant now, and idon't want to see my costs rise by $3,000 per month." what do you think of jill's reasoning?
a. jill is incorrectly ignoring the opportunity cost of using the building she owns.
b. jill is incorrectly failing to consider her fixed costs of production.
c. jill is incorrectly overestimating her variable costs of production.
d. jill is incorrectly failing to account for the cost of renting in the suburbs.
e. jill is correctly attempting to limit her explicit costs of production.
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Ответ:
a) Spaghetti
Explanation:
Dollar value means the actual amount raised from selling. In this case,
spaghetti will have dollar sales of:
=340 x $12
=$4,080
Steak
=212 x $16
=$3,392
Therefore, spaghetti has higher dollar sales.