Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes this year equaled $90,400 . Sam's explicit costs this year equals:
a. $84,400.
b. $39,000.
c. $55,000.
d. $45,600.
e. $40,000.
b
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Professor Tabarrok uses which rewritten version of the quantity theory of money to explain the aggregate demand curve?
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The production function shows:
a. the total cost incurred to produce a certain level of output. b. the changes in cost incurred as output level varies. c. the relationship between inputs used and output produced. d. the impact of a change in production on the firm's revenues.