Justin Brimer owns his own taxi, for which he bought a $22,000 permit to operate two years ago. Mr. Brimer earns $37,000 a year operating as an independent but has the opportunity to sell the taxi and permit for $81,000 and take a position as dispatcher for Carter Taxi Co. The dispatcher position pays $34,000 a year for a 39-hour week. Driving his own taxi, Mr. Brimer works approximately 50 hours per week. If he sells his business, he will invest the $81,000 and can earn a 10 percent return.
a. Determine the opportunity cost of owning and operating the independent business.
b-1. Calculate the earnings of Justin Brimer operating as an independent
b-2. Calculate the earnings of Justin Brimer working as a dispatcher.