Suppose that a small family farm sold its output for $110,000 in a given year. The family spent $20,000 on fuel, $30,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $30,000 working at other occupations, the accounting profit for the family farm is , the economic profit for the family farm is , (please put your answer for both accounting and economic profit in numerical values without any dollar sign, comma or decimal places.) Should the family open the family farm? (please put your answer as either yes or no, lower cases only). If the family members opportunity cost of their time increases and now, they could earn $35,000 working elsewhere, the accounting profit for the family farm is , the economic profit for the family farm is (please put your answer for both accounting and economic profit in numerical values without any dollar sign, comma or decimal places.) Suppose instead the family members could now earn $40,000 for working elsewhere, should the family open the family farm please put your answer as either yes or no, lower cases only).
Suppose that a small family farm sold its output for $110,000 in a given year. The family spent $20,000 on fuel, $30,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $30,000 working at other occupations, the accounting profit for the family farm is , the economic profit for the family farm is , (please put your answer for both accounting and economic profit in numerical values without any dollar sign, comma or decimal places.) Should the family open the family farm? (please put your answer as either yes or no, lower cases only). If the family members opportunity cost of their time increases and now, they could earn $35,000 working elsewhere, the accounting profit for the family farm is , the economic profit for the family farm is (please put your answer for both accounting and economic profit in numerical values without any dollar sign, comma or decimal places.) Suppose instead the family members could now earn $40,000 for working elsewhere, should the family open the family farm please put your answer as either yes or no, lower cases only).
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 1DQ
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Transcribed Image Text:Suppose that a small family farm sold its output for $110,000 in a given year. The family spent $20,000 on fuel, $30,000 on seed, fertilizer, and pesticides, and $25,000 on equipment,
including maintenance. The family members could have earned $30,000 working at other occupations, the accounting profit for the family farm is
the
economic profit for the family farm is
, (please put your answer for both accounting and economic profit in numerical values without any dollar sign,
comma or decimal places.) Should the family open the family farm?
(please put your answer as either yes or no, lower cases only). If the family
members opportunity cost of their time increases and now, they could earn $35,000 working elsewhere, the accounting profit for the family farm is
the
economic profit for the family farm is
(please put your answer for both accounting and economic profit in numerical values without any dollar sign,
comma or decimal places.) Suppose instead the family members could now earn $40,000 for working elsewhere, should the family open the family farm
please put your answer as either yes or no, lower cases only).
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