In 2019 Karl Karl taught music and earned $ 20 comma 000 20,000. On January 1, 2020, he he quit teaching and started a catering catering business. Use the question facts to calculate Karl's Karl's opportunity cost of production and economic profit in the first year.

Question content area bottom left Part 1 Karl's Karl's opportunity cost of production in 2020 is _______.

A. $ 82 comma 250 82,250

B. $ 81 comma 500 81,500

C. $ 10 comma 000 10,000

D. $ 77 comma 250 77,250

Part 2 Karl's Karl's economic profit in the first year is _______.

A. $ 55 comma 000 55,000

B. $ negative 22 comma 250 22,250

C. $ negative 17 comma 250 17,250

D. $ 50 comma 000 50,000

. . .

Question content area right Part 1 Question Facts 1. Karl Karl stopped renting out his his basement for $ 6 comma 500 6,500 a year and used it as his his business office instead. 2. He He paid $ 2 comma 500 2,500 for the lease of a delivery van theleaseofadeliveryvan and $ 2 comma 500 2,500 for radio and newspaper advertising radioandnewspaperadvertising. 3. He He earned interest at 5 5 percent a year on his his savings account balance.

He He took $ 5 comma 000 5,000 from his his savings account to buy a professional stove professionalstove. 4. At the end of 2020, Karl Karl could have sold his his professional stove professionalstove for $ 4 comma 500 4,500. 5. He He received a total revenue of $ 60 comma 000 60,000 from his his catering catering business. 6. Normal profit is $ 50 comma 000 50,000 a year.