# In 2016 Toni Taught Music And Earned 20 000 She Also Earned 4 000 By Renting Out

In 2016, Toni taught music and earned \$20,000. She also earned \$4,000 by renting out her basement. On January 1,

2017, she quit teaching, stopped renting out her basement, and began her new Web site design business. She took \$2,000 from her savings account to buy a computer. During 2017, she paid \$1,500 for the lease of a Web server and \$1,750 for high- speed Internet service. Her total revenue from Web site designing of \$45,000 and she earned interest at 5 percent a year on her savings account balance. Normal profit is \$55,000 a year. At the end of 2017, Toni could have sold her computer for \$500. Calculate Toni’s opportunity cost of production and her economic profit in 2017.

# In 2016 Toni Taught Music And Earned 20 000 She Also Earned 4 000 By Renting Out

In 2016, Toni taught music and earned \$20,000. She also earned \$4,000 by renting out her basement. On January 1,

2017, she quit teaching, stopped renting out her basement, and began her new Web site design business. She took \$2,000 from her savings account to buy a computer. During 2017, she paid \$1,500 for the lease of a Web server and \$1,750 for high- speed Internet service. Her total revenue from Web site designing of \$45,000 and she earned interest at 5 percent a year on her savings account balance. Normal profit is \$55,000 a year. At the end of 2017, Toni could have sold her computer for \$500. Calculate Toni’s opportunity cost of production and her economic profit in 2017.