Suppose a taxi company wishes to start a new business that requires a license from NY City for $30,000. The taxi license is transferable, but only 15,000 is refundable within 15 days of the date of purchase.
What ate the taxi’s fixed costs?..................................................................................
What is taxi’s sunk costs? ……………………………………………………….
Suppose the manager obtains a license but then decides against the business. If another taxi firm offers the manager $20,000 for the license, should the manager accept the offer? Explain