Assume that you want to change careers to run a gourmet food truck - the career of your dreams. You use Chapter 7 from Everything Economics as a guide to help you to decide whether to quit your current job, in which you make $45,000 per year. Answer the questions below
1. What are your fixed and your variable costs, per year, in running your food truck business? What is your total cost?
2. Assume a sales figure for your first year of $60,000 - what is your accounting profit?
3. What is the opportunity cost of your food truck career?
4. What is your food truck salary - include the monetary value of the utils you derived from intangibles, such as working for yourself.
5. What is your economic profit?
6. Will you quit your job?