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erik [133]
3 years ago
12

Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$1

00 comma 000100,000 a​ year, and he pays workers ​$100 comma 000100,000 in wages. In​ return, he produces 100 comma 000100,000 baskets of peaches per​ year, which sell for ​$3.003.00 each. Suppose the interest rate on savings is 55 percent and that the farmer could otherwise have earned ​$25 comma 00025,000 as a shoe salesman. What is the​ farmer's economic​ profit
Business
1 answer:
mina [271]3 years ago
8 0

Answer:

-$475,000

Explanation:

Total revenue = Baskets of peaches × Price

                       = 100,000 × $3

                       = $300,000

Explicit cost:

= Rent equipment + wages

= $100,000 + $100,000

= $200,000

Implicit cost:

= Land × Interest + salesman earned

=  $1,000,000 × 0.55 + $25,000

= $575,000

Total cost = Explicit cost: + Implicit cost

                = $200,000 + $575,000

                = $775,000

Economic profit = Total revenue - Total cost

                           = $300,000 - $775,000

                           = -$475,000

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Suppose that the European Union is now experiencing a recession. Its actual real GDP is €200 billion, and the estimate of its po
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As per the data given in the question,

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3 years ago
Analysis of Accounts Receivable and Allowance for Doubtful Accounts Steelcase, Inc. reported the following amounts in its 2014 a
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Answer:

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c. Average Net Accounts receivable = (Accounts receivable, net 2014 + Accounts receivable, net 2013) / 2 = ($306.8 + $287.3] / 2 = $297.05

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Total Cash received from customers in 2014 = $2,966.7 + $2.5

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