(Solved): 1. Kiara is thinking of opening an artisanal cheese store. She forecasts revenues of $200,000 per ye ...

1. Kiara is thinking of opening an artisanal cheese store. She forecasts revenues of $200,000 per year, and explicit financial costs of $120,000 per year. She could only pursue this dream if she quits her current job as a teacher, where she earns $40,000 per year. She would also need to invest $100,000 to outfit the store, and she would otherwise use that money to pay down her mortgage, which is at an interest rate of 8% per year. Calculate accounting profit, implicit opportunity costs, and economic profit, and assess whether you would advise Kiara to launch the new business 2. Suppose a firm has the cost structure shown in the table below. 

Find total cost, average total cost, average fixed cost, and average variable cost for each output level.