Bessie wants to calculate the accounting and economic profits on her cattle farm in Nebraska. She pays $130,000 per year as her explicit costs for the cost of raising cattle, wages, and insurance. She forgoes $30,000 per year that she could make as a teacher. If her total revenue equals $140,000, that means her accounting profit is and her economic profit is a) $60,000; $30,000 b) $30,000; -$30,000 Oc) -$10,000; -$10,000 d) $10,000; -$20,000

Bessie wants to calculate the accounting and economic profits on her cattle farm in Nebraska. She pays $130,000 per year as her explicit costs for the cost of raising cattle, wages, and insurance. She forgoes $30,000 per year that she could make as a teacher. If her total revenue equals $140,000, that means her accounting profit is and her economic profit is a) $60,000; $30,000 b) $30,000; -$30,000 Oc) -$10,000; -$10,000 d) $10,000; -$20,000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

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