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Managerial Economics · End Term · 10 May 2026 · January 2026 term · Set 1

Question 30: The economic cost associated with Mohan’s restaurant bus…

Question 30

+1.5 marksNumerical answer

Mohan quits his IT job, where he was earning a salary of ₹700,000 per year, to start his own restaurant business in a building that he owns and was previously renting out for ₹290,000 per year. In his first year of business, he has the following expenses: salary paid to himself, ₹500,000; rent, ₹0; other expenses, ₹340,000.
Based on the above data, answer the given subquestions.

The economic cost associated with Mohan’s restaurant business is ____________

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Correct answer: 1330000

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Question 30 of 37 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 10 May 2026, in the January 2026 term (Managerial Economics 06 May 26). It carries 1.5 marks.

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