×
Log in to StudySoup
Get Full Access to Thousands of Study Materials at Your School
Join StudySoup for FREE
Get Full Access to Thousands of Study Materials at Your School

Already have an account? Login here
×
Reset your password

You own and operate a bike store. Each year, you receive revenue of $200,000 from your

Krugman's Economics for AP* | 2nd Edition | ISBN: 9781429218276 | Authors: Margaret Ray, David A. Anderson ISBN: 9781429218276 428

Solution for problem 3 Chapter section 10

Krugman's Economics for AP* | 2nd Edition

  • Textbook Solutions
  • 2901 Step-by-step solutions solved by professors and subject experts
  • Get 24/7 help from StudySoup virtual teaching assistants
Krugman's Economics for AP* | 2nd Edition | ISBN: 9781429218276 | Authors: Margaret Ray, David A. Anderson

Krugman's Economics for AP* | 2nd Edition

4 5 1 278 Reviews
24
3
Problem 3

You own and operate a bike store. Each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. In addition, you pay $20,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. A large clothing retail chain wants to expand and offers to rent the store from you for $50,000 per year. How do you explain to your friends that despite making a profit, it is too costly for you to continue running your store?

Step-by-Step Solution:
Step 1 of 3

9/11/17 5 box model  Performance- (defining success) – how we want to be measured o In restaurant measure performance by their profit and effectiveness o Reviews/awards – need positive reviews o Number of customers- are we known Are we reachable Recognizable o Better – returning customers!!!! o Health inspection – Grade A o Where the great waiters and waitresses are working  Conduct- how do you pay employees Advertise where open stores o Choices that people like you and me make o Business people have full control of our conduct o Choices you make as business to try and get the performance  Macro environment o Zero influence o Farm to Table mo

Step 2 of 3

Chapter section 10, Problem 3 is Solved
Step 3 of 3

Textbook: Krugman's Economics for AP*
Edition: 2
Author: Margaret Ray, David A. Anderson
ISBN: 9781429218276

Other solutions

People also purchased

Related chapters

Unlock Textbook Solution

Enter your email below to unlock your verified solution to:

You own and operate a bike store. Each year, you receive revenue of $200,000 from your