**Entrepreneurial Economics Problem** Harvey quit his job at State University, where he earned $58,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $8,000 a year. To start the business, he cashed in $60,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 15,000 units of software at $60 for each unit. Of the $60 per unit, $50 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. **Question:** The total revenues of Harvey’s firm in the first year were: **Multiple Choice Options:** - $150,000 - $78,000 - $750,000 - $900,000 *Note: Calculate the total revenue based on the units sold and the price per unit.*
**Entrepreneurial Economics Problem** Harvey quit his job at State University, where he earned $58,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $8,000 a year. To start the business, he cashed in $60,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 15,000 units of software at $60 for each unit. Of the $60 per unit, $50 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. **Question:** The total revenues of Harvey’s firm in the first year were: **Multiple Choice Options:** - $150,000 - $78,000 - $750,000 - $900,000 *Note: Calculate the total revenue based on the units sold and the price per unit.*
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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