# Economics Assignment Help Makes your Numerical Portions Easier in Economics!

Jack is going to chop 900 lawns and get \$30,000 in revenue. He can give his capital on lease equipment for \$3200. Assume that fuel and other expenses including marketing, billing, bookkeeping etc, come to \$1800. This means he has cash income of \$25,000. Is this his profit?

Assume that Jack puts 9 hours a day for the business and for a total of 900 hours for the season. In that case, on an average, Jack is getting just under \$30 an hour. He should not consider all this as a profit.

Let as assume that Jack could earn \$32 an hour by working in an office. Now if we include the value of his time, (\$32)(900) = \$28,800, then the lawn chopping business loses \$1800. In other words, he should better be working in an office rather than starting his lawn-chopping business.

On the other side, let us assume that Jack’s best option is to make \$15 an hour. Then the lawn chopping business is a better option. But to compute his real profit he should less \$15 an hour from his proceeds. Multiplying \$15 an hour by 900 hours provides \$14500 in salary. Now subtracting this from \$25,000 gives \$10500 of economic profit.

So if Jack does not go for the \$10500 salary, then economists would call this as his opportunity cost. Opportunity cost is defined as what a person needs to give up in order getting something.

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