john an accountant quit his $80,000 a year job and bought an existing laundry fa
ID: 1229140 • Letter: J
Question
john an accountant quit his $80,000 a year job and bought an existing laundry facility from its previous owner. the lease had five more years remaining and required a monthly payment of $4000. johns explicit costs are $3000 per month more than his revenue. should john continue operating his business?a. if johns marginal revenue is greater oe equal to his marginal costs then he should stay in business
b. john should continue to run the laundry until his lease runs out
c. john explicit costs exceeds his total revenue. he should shut down his laundry
d. cannot be dtermined without knowing his revenue
Explanation / Answer
a. if johns marginal revenue is greater oe equal to his marginal costs then he should stay in business
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