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The Firm and Its Economic Problem (Study Plan 10.1) 1. One year ago, Jack and Jill set up a vinegar- bottling rm (called JJVB). Use the following data to calculate JJVB's opportunity cost of produc- tion during its rst year of operation: I Jack and Jill put $50,000 of their own money into the rm and bought equipment for $30,000. I They hired one worker at $20,000 a year. I Jack quit his old job, which paid $30,000 a year, and worked full-time for JJVB. l Jill kept her old job, which paid $30 an hour, but gave up 500 hours of leisure a year to work for JJVB. l JJVB bought $10,000 of goods and services. I The market value of the equipment at the end of the year was $28,000. I Jack and Jill have a $100,000 home loan on which they pay interest of 6 percent a year. 2. 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 bal- ance 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 prot