Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, and he pays workers $130,000 in wages. In return, he produces 200,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 5 percent and that the farmer could otherwise have earned $35,000 as a shoe salesman. What is the farmer's economic profit?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
While a television news reporter might state that "today the fed raised the federal funds rate from 1 percent to 1.25 percent," a more precise account of the fed's action would be as follows:?
Answers (1)
Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank.
Answers (1)
Rothstein Corp. had the same capital structure in 2021 and 2022, consisting of the following: Preferred stock, $12 par, 5% cumulative, 20,000 shares issued and outstanding$240,000 Common stock, $6 par, 250,000 shares issued and outstanding 1,500,000
Answers (1)
Two business companies dispute the quality of goods delivered by the seller and the price agreed to by the buter.
Answers (1)
Should schools raise money by selling candy and sugary soft drinks to students
Answers (1)
New Questions in Business
Which one of the following is the most widely used source of retirement income? IRAs Keogh plans company pension plans Social Security
Answers (1)
Martha bought a share of hippy company when it was $10 per share and sold it for $110 per share. By selling her stock, Martha experienced a? -$100 capital gain -$110 capital gain -$100 dividend -$110 dividend homework and confused
Answers (1)
In which of the following circumstances may auditors issue the standard (unmodified) report on the entity's financial statements? A.
Answers (1)
What is the most common type of network used in businesses?
Answers (1)
The practice of airing a off-net rerun program daily at the same time is called:
Answers (1)