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Antonio lives in houston and runs a business that sells pianos. in an average year, he receives $704,000 in revenue from selling pianos. of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. he owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if antonio does not operate this piano business, he can work as an accountant and receive an annual salary of $20,000 with no additional monetary costs. no other costs are incurred in running this piano business.
if jake's goal is to maximize his economic profit, he stay in the guitar business because the economic profit he would earn as an accountant would
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Antonio lives in houston and runs a business that sells pianos. in an average year, he receives $704...
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