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Gordon is a senior majoring in computer
network development at Smart State University. While he has been attending
college, Gordon started a computer consulting business to help senior citizens
set up their network connections and teach them how to use e-mail. Gordon
charges $25 per hour for his consulting services. Gordon also works 5 hours a
week for the Economics Department to maintain that department’s Web page. The
Economics Department pays Gordon $20 per hour. From this information we can
should increase the number of hours he works for the Economics Department to
make it comparable to his consulting business income.
is obviously not maximizing his well-being if he continues to work for the
Gordon chooses one hour at the beach with his friends rather than spend one
more hour with a consulting client, the forgone income of $25 is considered a
cost of the choice to go to the beach.
the Economics Department offers Gordon a full-time job he will definitely not
take the job offer.
33. Economists normally assume that the goal of a
firm is to
its total revenue.
its explicit costs.
its total cost.