A new recreational area in a small town will take 20 full-time (40 hours per week) workers 3 weeks to complete. In addition, the cost of materials is expected to be $75,000. The recreational area will have maintenance costs of $10,000 per year. The maintenance costs will be incurred every year and the discount rate if 5 percent.

a. If the labor market is perfectly competitive and the market wage is $20, what are the immediate opportunity costs of taking on this project? Show your calculations.

b. If the labor market is perfectly competitive and the market wage is $20, what are the total (both immediate and future) opportunity costs of taking on this project? Show your calculations.

c. If instead the town had unemployment, and half of the workers have the reservation wage of $10. How would the total (both the immediate and future) opportunity cost of the project change? Show your calculations.

d. If your answers to (a) and (c) differ, explain why.