Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $100,000 a year, and he pays workers $140,000 in wages. In return, he produces 300,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 1 percent and that the farmer could otherwise have earned $45,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer eams economic profit of $ (Enter your response as an integer.)

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $100,000 a year, and he pays workers $140,000 in wages. In return, he produces 300,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 1 percent and that the farmer could otherwise have earned $45,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer eams economic profit of $ (Enter your response as an integer.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.3P

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Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, and he pays workers $130,000 in wages. In return, he produces 250,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 4 percent and that the farmer could otherwise have earned $40,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $. (Enter your response as an integer.)
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Solve it correctly not use excel
Suppose a farmer in Georgia begins to grow peaches He uses $1,000,000 in savings to purchase land, he rents equipment for $70,000 a year, and he pays workers $100,000 in wages In return, he produces 200,000 baskets o 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 $30,000 as a shoe salesman. What is the farmer's economic profit?
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $60,000 a year, and he pays workers $100,000 in wages In return, he produces 300.000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 4 percent and that the farmer could otherwise have eamed $45,000 as a shoe salesman What is the farmer's economic prof? The peach farmer cams economic profit of $ (Enter your response as an integer) What is the farmer's accounting profit? The peach farmer eams accounting profit of $(Enter your response sanger)
Please no written by hand solutions K Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $80,000 a year, and he pays workers $150,000 in wages. In return, he produces 100,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 2 percent and that the farmer could otherwise have earned $35,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $ (Enter your response as an integer.)
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Joanne has just completed high school and is trying to determine whether to go to communtiy college for two years or go directly to work. Her objective is to maximize the savings she will have in the bank five years from now. If she goes directly to work, she will earn $18,500 per year for each of the next five years. If she goes to community college, for each of the next two years she will earn nothing—indeed, she will have to borrow $6,000 each year to cover tuition and books. This loan must be repaid in full three years after graduation. If she graduates from community college, in each of the subsequent three years, her wages will be $35,000 per year. Joanne’s total living expenses and taxes, excluding tuition and books, equal $15,000 per year. Joanne should go to (Click to select) work junior college , since the total value of Joanne's savings would be $__ if she goes directly to work and $__ if she goes to community college.
what is the solution with this one?
EDUCATION 2. Assume that you are deciding whether to acquire a four-year university degree. Your only consideration at this moment is the degree as an investment for yourself. Costs per year are tuition fees of $600 and books at $100. The government also pays to the university an equivalent amount to your tuition fees to cover the real cost. If you didn't go to university, you could earn $6,000 per year as an acrobat. With a university degree, however, you know that you can earn $10,000 per year as an acrobat. Because of the nature of your chosen occupation, your time horizon for the investment decision is exactly 10 years after university; that is, if the investment is to be worthwhile, it must be so within a 10-year period after graduation. The market rate of interest is 5 percent. Would you make the investment in a degree?
7. A student decides to save money for a trip to Uluru. She opens a savings account with $300, and sets up a daily automatic transfer of 2 from her regular account into her savings account. The bank pays 5.5% interest per year into her savings account, compounded continuously. The student plans to withdraw the money from the bank at the end of two years. She is, however, worried that she isn't saving enough, and decides to model the problem to find out how much she will have at the end of two years. Let M(t) be the amount of money in her savings account at time t. She opens the account at time t 0. Assume that one year has 365 days. (a) Her first model is the following, with time in years: dM dt = 0.06M + 2, M(0) = 300. A friend of hers tells her that there is a problem with this model. What is the prob- lem? (b) She realizes where she went wrong, and fixes her model. There are two standard ways to fix it, using time in years or using time in days. Make a choice, and fix the model. (c)…