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Your aunt is thinking about opening a hardware store. She estimates that it would cost $300,000 per year to rent the location and buy the stock. In addition, she would have to quit her $45,000 per year job as an accountant. Suppose your aunt thought she could sell $320,000 worth of merchandise in a year. Which statement is true? The opportunity cost of running the hardware store is $300,000 and she should open the store since her economic profit would be
The opportunity cost of running the hardware store is $345,000 and she should open the store since her accounting profit would be positive.
The opportunity cost of running the hardware store is $300,000 and she should not open the store since her accounting profit would be negative.
The opportunity cost of running the hardware store is $345,000 and she should not open the store since her economic profit would be negative
None of above
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