Kevin Coughlin – a lawyer working for a large law

Question
Kevin Coughlin, a lawyer working for a large law firm and earning
$60,000 per year, is contemplating setting up his own law practice. He
estimates that renting an office would cost $10,000 per year, hiring a
legal secretary would cost $20,000 per year, renting the required office
equipment would cost $ 15,000 per year, and purchasing the required
supplies, paying for electricity, telephone, and so forth would cost another
45,000. The lawyer estimated that his total revenues for the year would
$100,000, and he is indifferent between keeping his present occupation
with the large law firm and opening his own law office.

1. How much would be the explicit costs of the lawyer for running his
own law office for the year?
2. How much would be the accounting costs ? The implicit costs? The
economic costs?
3. Should the lawyer go ahead and start his own practice?

Originally posted 2016-11-13 10:32:20. Republished by Blog Post Promoter

Kevin Coughlin – A Lawyer Working For A Large Law

Kevin Coughlin, a lawyer working for a large law firm and earning$60,000 per year, is contemplating setting up his own law practice. Heestimates that renting an office would cost $10,000 per year, hiring alegal secretary would cost $20,000 per year, renting the required officeequipment would cost $ 15,000 per year, and purchasing the requiredsupplies, paying for electricity, telephone, and so forth would cost another45,000. The lawyer estimated that his total revenues for the year would$100,000, and he is indifferent between keeping his present occupationwith the large law firm and opening his own law office. 1. How much would be the explicit costs of the lawyer for running hisown law office for the year?2. How much would be the accounting costs ? The implicit costs? Theeconomic costs?3. Should the lawyer go ahead and start his own practice?