Timothy quits his job which pays $86000 a year , to enroll in a 3 year...

Timothy quits his job which pays $86000 a year , to enroll in a 3 year graduate program. His annual school expenses are $64900 for tuition, $8500 for books, and $1300 for food.

1. What is his opportunity cost for attending the graduate program?

A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing plant is considering increasing the numbers of workers to production.

1. Does Diminishing Return hold in this scenario? (YES/NO)

2. Explain answer

Expert Solution

1. Timothy chose to go to for graduate program instead of working, his opportunity cost is actually the sum of the school expenses plus the money he could have earned had he chosen to work. His opportunity cost for attending the graduate program is (86000*3) +[(64900+8500+1300)*3] = $2,58,000+ $2,24,100 = $4,82,100.

Rahul Sunny answered 2 years ago

A carpenter quits his job at a furniture factory to open his own cabinetmaking business. In...

A carpenter quits his job at a furniture factory to open his own cabinetmaking business. In his first two years of operation, his sales average $100 000 and his operating costs for wood, workshop and tool rental, utilities, and miscellaneous expenses average $70 000. Now his old job at the furniture factory is again available. Should he take it or remain in business for himself? How would you make this decision? (Hint: Of course it will depend on how much...

42 When an employee quits his or her job because of employer imposed intolerable work conditions...

42 When an employee quits his or her job because of employer imposed intolerable work conditions purposefully, the employee's termination is known as: a. Constructive discharge b. Retaliatory discharge c. Involuntary discharge d. Wrongful discharge

Q2: Frank is thinking about quitting his teaching job, which pays $75,000 per year, to own...

Q2: Frank is thinking about quitting his teaching job, which pays $75,000 per year, to own and operate his own food truck business. If he starts the business, he will spend $90,000 to purchase a truck and appliances (which he feels is a better option than renting the physical capital). This amount of money would come from two sources: $35,000 would be borrowed from a bank at an interest rate of 4% per year and $55,000 would come from Frank’s...

Timothy is a seven year old boy, his mother takes him to the pediatrician for review....

Timothy is a seven year old boy, his mother takes him to the pediatrician for review. Its weight is 31 kg and corresponds to the 95th percentile; their height is 127 cm and they are between the 75th and 90th percentiles for their age. His body mass index is 19.25 kg / m2, which is just above the 95th percentile for his age. Their growth percentiles have increased in recent years. Timothy's mother expresses her concern to the pediatrician about...

"Business Law" Dr. A quits her job at ABC University because she got a better job...

"Business Law" Dr. A quits her job at ABC University because she got a better job at XYZ University. Can ABC University get an injunction prohibiting her from teaching at XYZ University?

Timothy is a 35% partner in the Total Partnership, a calendar-year-end entity. Timothy has an outside...

Timothy is a 35% partner in the Total Partnership, a calendar-year-end entity. Timothy has an outside basis in his interest in Total Partnership of $198,000, which includes his share of the $45,000 of partnership liabilities. On December 31, Total makes a proportionate distribution of the following assets to Timothy: BASIS FMV Cash $50,000 $50,000 Inventory $65,000 $75,000 Land $50,000 $65,000 Totals $165,000 $180,000 For an operating distribution, outline the tax consequences (amount and character of recognized gain or loss, basis...

1. Sydney earned an annual income of $90,000 for a local employer. She quits her job...

1. Sydney earned an annual income of $90,000 for a local employer. She quits her job and sets up a rival company. Her annual expenses include $30,000 to rent her premises, $6,000 for the rent on equipment, and a salary of $30,000 for office help. To help finance the new business, she cashes in a bond worth $10,000 that had an annual interest payment of $500. Sydney’s implicit costs are ________. A. $90,000 B. $90,500 C. $100,000 D. $100,500 2. As production increases,...

Mary Svevo decides to move to move to Montauk, NY after she quits her job in...

Mary Svevo decides to move to move to Montauk, NY after she quits her job in Lacuna, Inc. She also determines to purchase a single- family home there. The total acquisition price of the house is $1,295,000, and 90% of it would be financed with a 30- year FRM. The mortgage payments are made at the end of each month before maturity. The interest rate on the mortgage loan is 8.40%. Also, the lender requires her to obtain private mortgage...

You are holding a par bond with a 3 year maturity, which pays coupon rate of...

You are holding a par bond with a 3 year maturity, which pays coupon rate of 8% and is selling at par. Assume that immediately after the purchase, market rates for this bond drop to 4%. a) What is the bond new price? b) What will be the realized compound yield if the bond is held to maturity? (assume annual coupons)

Suppose an individual has a job that pays $50,000/year. With a 5% probability, next year their...

Suppose an individual has a job that pays $50,000/year. With a 5% probability, next year their wage will be reduced to $20,000/year. a. What is their expected next year? b. Suppose that the individual can insure themselves against the risk of reduced consumption next year. What would be the actuarially fair insurance premium?

Question