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Title: What are Mary’s opportunity costs of operating her new business?

Question Details
Q:

As part of an estate settlement Mary received $1 million. She decided to use the money to purchase a small business in Anywhere, USA. If Mary would have invested the $1 million in a risk-free bond fund she could have made $100,000 each year. She also quit her job with Lucky.Com Inc. to devote all of her time to her new business; her salary at Lucky.Com Inc. was $75,000 per year.

Q: What are Mary’s opportunity costs of operating her new business?

           a.   $25,000

           b.   $75,000

           c.    $100,000

           d.   $175,000


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Title: What are Mary’s opportunity costs of operating her new business?

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    • Posted Date: Apr 27, 2012 at 9:20:47 PM

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A:
...sp;        a.   $25,000        &nb...
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