Homework Help: Managerial Economics

Posted by Dawn on Tuesday, June 3, 2008 at 11:28pm.

The Midnight hour a local nightclub earned $100,000 in accounting profit last year. This year the owner, who had invested $1million in the club, decided to close the club. What can you say about economic profit (and the rate of return) in the nightclub business?

Managerial Economics - economyst, Wednesday, June 4, 2008 at 9:16am
a) you could say the nightclub had zero or negitive economic profits.
b) The rate of return on capital in the nightclub business is 10%
Managerial Economics - SraJMcGin, Wednesday, June 4, 2008 at 9:24am
Thank you for using the Jiskha Homework Help Forum. Take a look at the nightclubs that make it and the many that don't. It's a big investment in the first place, a liquor license must be obtained, etc. Here is a plan to start up a bar :

http://planmagic.com/business_plan/bar_business_plan.html

Here's an interesting article, but don't miss the "menu" to the left with lots of choices:

http://www.nightclubpros.com/18andovernightclubs.html

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