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gayaneshka [121]
3 years ago
13

Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed

, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations.
What is the economic profit at the family farm?
Mathematics
2 answers:
zheka24 [161]3 years ago
8 0
First we have to evaluate our income: $100,000. And then the expenditure (sum of all expenses): $25,000 + $40,000 + $25,000 = $90,000. This is the expenditure, taken away from our income we get $10,000, this is the economic profit of the family farm.
Viefleur [7K]3 years ago
8 0

Answer:

The economic profit is $10,000.

Step-by-step explanation:

A small family farm sold its output for $100,000

The family spent on fuel = $25,000

The family spent on seed fertilizer and pesticides =  $40,000

The family spent on equipment and maintenance = $25,000

They spent total = 25,000 + 40,000 + 25,000

                           = $90,000

The economic profit at the family farm = 100,000 - 90,000

                                                                =  $10,000

The economic profit is $10,000.

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