Norman Dowd owns his own taxi, for which he bought a $11,500 permit to operate...
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Norman Dowd owns his own taxi, for which he bought a $ permit to operate two years ago. Mr Dowd earns $ a year operating as an independent but has the opportunity to sell the taxi and permit for $ and take a position as dispatcher for Carter Taxi Company The dispatcher position pays $ a year for a hour week. Driving his own taxi, Mr Dowd works approximately hours per week. If he sells his business, he will invest the $ and can earn a percent return. Required a Determine the opportunity cost of owning and operating the independent business. b Calculate the earnings of Norman Dowd operating as an independent and the earnings of Norman Dowd working as a dispatcher. Based solely on financial considerations, should Mr Dowd sell the taxi and accept the position as dispatcher? tablea Opportunity cost,$ 
Norman Dowd owns his own taxi, for which he bought a $ permit to operate two years ago. Mr Dowd earns $ a year operating as an independent but has the opportunity to sell the taxi and permit for $ and take a position as dispatcher for Carter Taxi Company The dispatcher position pays $ a year for a hour week. Driving his own taxi, Mr Dowd works approximately hours per week. If he sells his business, he will invest the $ and can earn a percent return.
Required
a Determine the opportunity cost of owning and operating the independent business.
b Calculate the earnings of Norman Dowd operating as an independent and the earnings of Norman Dowd working as a dispatcher. Based solely on financial considerations, should Mr Dowd sell the taxi and accept the position as dispatcher?
tablea Opportunity cost,$
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