Blake decides to spend a spring day in the field planting wheat with some help from some workers he hires. Blake earns total revenue of $870. Blake incurs the following costs: $50 for renting a tractor, $150 for fertilizer, and $100 for wages paid to workers. Blake used $5000 that he could have invested in his savings account at 10 percent interest to organize his spring day planting wheat. In addition, Blake gave up $130 he could have earned at his other job in deciding to plant wheat. Refer to Scenario 13-1. What is Blake's economic profit? -$130 -$60 $130 $470

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Scenario 13-1
Blake decides to spend a spring day in the field planting wheat with some help from some workers he hires. Blake
earns total revenue of $870. Blake incurs the following costs: $50 for renting a tractor, $150 for fertilizer, and $100 for
wages paid to workers. Blake used $5000 that he could have invested in his savings account at 10 percent interest to
organize his spring day planting wheat. In addition, Blake gave up $130 he could have earned at his other job in
deciding to plant wheat.
Refer to Scenario 13-1. What is Blake's economic profit?
-$130
-$60
$130
$470
Transcribed Image Text:Scenario 13-1 Blake decides to spend a spring day in the field planting wheat with some help from some workers he hires. Blake earns total revenue of $870. Blake incurs the following costs: $50 for renting a tractor, $150 for fertilizer, and $100 for wages paid to workers. Blake used $5000 that he could have invested in his savings account at 10 percent interest to organize his spring day planting wheat. In addition, Blake gave up $130 he could have earned at his other job in deciding to plant wheat. Refer to Scenario 13-1. What is Blake's economic profit? -$130 -$60 $130 $470
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