Problem
Jenny is considering starting a new business selling organic groceries. It would cost her $350,000 a year to rent store space and buy the groceries from a wholesaler, and she would have to quit her current job and give up a $70,000 annual salary.
a. What is Jenny's opportunity cost of starting the business?
b. If Jenny can make an accounting profit of $50,000 a year selling the organic groceries, should she start the business?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.