In 2019 Toni taught music and earned $30,000.Question FactsOn January 1, 2020, she quit teaching and started a home decorating business.1. Toni stopped renting out her basement for$6,000 a year and used it as her business officeUse the question facts to calculate Toni's opportunity cost of production and economic profit in the first year.instead.Toni's opportunity cost of production in 2020 is2. She paid $1,000 for a set of sample booksand $2,000 for a booth at the Home Show.O A. $69,5803. She earned interest at 4 percent a year on hersavings account balance.B. $5,000C. $68,000She took $2,000 from her savings account to buy asewing machine.D. $66,5804. At the end of 2020, Toni could have sold hersewing machine for $1,500.Toni's economic profit in the first year is5. She received a total revenue of $30,000 from herhome decorating business.O A. $27,0006. Normal profit is $30,000 a year.B. $30,000C. $- 39,580D. $- 36,580

Explicit Cost can be defined as the cost of the factor of production which is purchased from the…

Answered: In 2019 Toni taught music and earned…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 7 Consider a coffee shop that can increase the amount of coffee sold by increasing the number of coffee machines. If the coffee seller faces diminishing marginal returns to the coffee machines, she must also face... O Decreasing marginal costs O Decreasing total cost Ⓒ Increasing Marginal Costs Increasing average costs Constant average costs

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