Question: One year ago, Jack and Jill set up a vinegar bottling firm (called JJVB). Use the following data to calculate JJVB's opportunity cost of production during its first year of operation:
• Jack and Jill put $50,000 of their own money into the firm and bought equipment for $30,000.
• They hired one worker at $20,000 a year.
• Jack quit his old job, which paid $30,000 a year, and worked full-time for JJVB.
• Jill kept her old job, which paid $30 an hour, but gave up 500 hours of leisure a year to work for JJVB.
• JJVB bought $10,000 of goods and services.
• The market value of the equipment at the end of the year was $28,000.
• Jack and Jill have a $100,000 home loan on which they pay interest of 6 percent a year.