You own a 10-acre blueberry farm. You could farm the land yourself or rent it out for $7,000 per year. Another option is to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is the opportunity cost to you of using the land to grow blueberries for a year? O a $2,000 Ob. $4,800 Oc. $5,000 Od. $9,800
You own a 10-acre blueberry farm. You could farm the land yourself or rent it out for $7,000 per year. Another option is to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is the opportunity cost to you of using the land to grow blueberries for a year? O a $2,000 Ob. $4,800 Oc. $5,000 Od. $9,800
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.2: Investing: Taking Risks With Your Savings
Problem 4R
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![You own a 10-acre blueberry farm. You could farm the land yourself or rent it out for $7,000 per year. Another option is
to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you
sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is
the opportunity cost to you of using the land to grow blueberries for a year?
O a. $2,000
Ob. $4,800
Oc. $5,000
O d. $9,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faca72af1-3ba2-4e7a-9c5f-02f007f53594%2Fcbe502d4-7056-4f6d-abd1-71ce11d8f10b%2F7dezhlv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You own a 10-acre blueberry farm. You could farm the land yourself or rent it out for $7,000 per year. Another option is
to sell the land this year at its current market price of $80,000. The price of the land next year will be $78,000. If you
sell it, your group has an investment opportunity from which you expect to make a return of 6 percent per year. What is
the opportunity cost to you of using the land to grow blueberries for a year?
O a. $2,000
Ob. $4,800
Oc. $5,000
O d. $9,800
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