Joe, who has no skills, no job experience, and no alternative employment, runs a shoeshine stand. Other operators of shoeshine stands earn

$10,000 a year. Joe pays rent of $2,000 a year, and his total revenue is $15,000 a year. Joe spent

$1,000 on equipment, which he used his credit card to buy. The interest on a credit card balance is 20 percent a year. At the end of the year, Joe was offered $500 for his business and all its equipment. Calculate Joe’s opportunity cost of production and his economic profit.