Business

Sierra Romero

30 April, 04:05

Zelda is a recent fashion graduate. She started her own apparel store with an investment of$300,000. In the first year she made a profit of $60,000. If she had taken up a job as a fashioneditor for a magazine, she would have earned $50,000 as salary per year. Also, she could haveinvested her capital, $300,000, in treasury bonds and earned an interest of $12,000.

Thus, theamount $62,000 ($50,000 + $12,000) would be Genevieve's:

a. social cost.

b. break-even price.

c. reservation price.

d. opportunity cost.