What is the dollar amount of the opportunity costs

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Problem: When Maria graduated with honors from the Nigerian Trucking Academy, she told her boyfriend that she will not accept any gifts unless it was cash. Her boyfriend ignored her request and gave her a truck that is used for transporting cargo across the country. After contemplating whether to end the relationship or not, Maria decided that a truck plus a boyfriend are better than cash. Recently, Maria, driving her own truck, was boasting to fellow truckers that her economic profits are $7000 (because her revenues were typically $25,000 per month with operating costs of $18,000 per month).  If Maria was driving trucks for one of the competing trucking firms, she would earn $5,000 per month. If she decides to rent her truck out rather than drive it herself, she will make $15000.

Required:

Question 1: What is the dollar amount of the opportunity costs of the resources used by Maria per month when she drives her own truck?

Question 2: Do you agree with Maria's view of her economic profit? Why or why not? What advice would you give to her based on the scenario above?

Reference no: EM132435899

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