Suppose Natasha currently makes $50,000 per year working as a
manager at a cable TV company. She then develops two possible
entrepreneurial business opportunities. In one, she will quit her
job to start an organic soap company. In the other, she will try to
develop an Internet-based competitor to the local cable company.
For the soap-making opportunity, she anticipates annual revenue of
$465,000 and costs for the necessary land, labor, and capital of
$435,000 per year. For the Internet opportunity,...