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Reil [10]
4 years ago
10

Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$5

0,000 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?
Business
1 answer:
Sidana [21]4 years ago
3 0
Answer :


A. 305,000


B. 370,000
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