2 Joe, who has no skills, no job experience and no alternative employment, runs a shoeshine stand at the airport.

Operators of other shoeshine stands earn €10,000 a year.

Joe pays rent to the airport of €2,000 a year, and his total revenue from shining shoes is €15,000 a year. Joe spent

€1,000 on a chair, polish and brushes, using his credit card to buy them. The interest on a credit card balance is 20 per cent 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.