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Gino is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 he opened a body board manufacturing business. Question Facts 1. Gino stopped renting out his cottage for $3,000 a year and used it as his factory. 2. The market value of the cottage increased from $96,000 to $104,000. At the end of 2020, Gino submitted the information on the right to his accountant. Use the question facts to calculate Gino's opportunity cost of production and economic profit. 3. He spent $5,000 on materials, phone, utilities, etc. 4. He leased machines for $12,000 a year. ..... Gino's opportunity cost of production is O A. $50,250 О В. 531,800 ОС. 587,000 O D. 82,050 5. He paid $10,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. 7. He borrowed $60,000 at 8 percent a year from the bank. 8. He sold $240,000 worth of body boards. 9. Normal profit is $25,000 a year. Gino's economic profit is O A. $208,200

Gino is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 he opened a body board manufacturing business. Question Facts 1. Gino stopped renting out his cottage for $3,000 a year and used it as his factory. 2. The market value of the cottage increased from $96,000 to $104,000. At the end of 2020, Gino submitted the information on the right to his accountant. Use the question facts to calculate Gino's opportunity cost of production and economic profit. 3. He spent $5,000 on materials, phone, utilities, etc. 4. He leased machines for $12,000 a year. ..... Gino's opportunity cost of production is O A. $50,250 О В. 531,800 ОС. 587,000 O D. 82,050 5. He paid $10,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. 7. He borrowed $60,000 at 8 percent a year from the bank. 8. He sold $240,000 worth of body boards. 9. Normal profit is $25,000 a year. Gino's economic profit is O A. $208,200

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Gino is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 he opened a body board manufacturing business. Question Facts 1. Gino stopped renting out his cottage for $3,000 a year and used it as his factory. 2. The market value of the cottage increased from $96,000 to $104,000. 3. He spent $5,000 on materials, phone, utilities, etc. At the end of 2020, Gino submitted the information on the right to his accountant. Use the question facts to calculate Gino's opportunity cost of production and economic profit. 4. He leased machines for $12,000 a year. Gino's opportunity cost of production is O A. $50,250 O B. $31,800 5. He paid $10,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. 7. He borrowed $60,000 at 8 percent a year from the bank. OC. $87,000 8. He sold $240,000 worth of body boards. 9. Normal profit is $25,000 a year. O D. $82,050 Gino's economic profit is O A. $208,200 O B. $189,750 OC. $25,000 O D. $157,950 (.....
Transcribed Image Text:Gino is a computer programmer who earned $30,000 in 2019. But on January 1, 2020 he opened a body board manufacturing business. Question Facts 1. Gino stopped renting out his cottage for $3,000 a year and used it as his factory. 2. The market value of the cottage increased from $96,000 to $104,000. 3. He spent $5,000 on materials, phone, utilities, etc. At the end of 2020, Gino submitted the information on the right to his accountant. Use the question facts to calculate Gino's opportunity cost of production and economic profit. 4. He leased machines for $12,000 a year. Gino's opportunity cost of production is O A. $50,250 O B. $31,800 5. He paid $10,000 in wages. 6. He used $5,000 from his savings account, which earns 5 percent a year interest. 7. He borrowed $60,000 at 8 percent a year from the bank. OC. $87,000 8. He sold $240,000 worth of body boards. 9. Normal profit is $25,000 a year. O D. $82,050 Gino's economic profit is O A. $208,200 O B. $189,750 OC. $25,000 O D. $157,950 (.....
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