One year ago, Jack and Jill set up a vinegarbottling firm (called JJVB). Use the following data to calculate JJVB’s opportunity cost of production during its first year of operation:

■ Jack and Jill put $50,000 of their own money into the firm and bought equipment for

$30,000.

■ They hired one worker at $20,000 a year.

■ Jack quit his old job, which paid $30,000 a year, and worked full-time for JJVB.

■ Jill kept her old job, which paid $30 an hour, but gave up 500 hours of leisure a year to work for JJVB.

■ JJVB bought $10,000 of goods and services.

■ The market value of the equipment at the end of the year was $28,000.

■ Jack and Jill have a $100,000 home loan on which they pay interest of 6 percent a year.