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 $140,000 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 1 percent and that the farmer could otherwise have earned $30,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $ (Enter your response as an integer)

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 $140,000 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 1 percent and that the farmer could otherwise have earned $30,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $ (Enter your response as an integer)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 7SCQ: If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was...

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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 $100,000 a year, and he pays workers $110,000 in wages. In return, he produces 150,000 baskets of peaches per year, which sell for $4.00 each. Suppose the interest ra on savings is 1 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.)
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 $110,000 in wages. In return, he produces 150,000 baskets of 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? The peach farmer earns economic profit of $. (Enter your response as an integer.) What is the farmer's accounting profit? The peach farmer earns accounting 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 $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.)
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)
1. Sarah used to work as a business manager in a small company for $50,000 per year but quit to start her own fashion business factory. To invest in her factory, she withdrew $25,000 from her savings, which paid 4 percent interest, and borrowed $30,000 from her brother, whom she pays 4 percent interest per year. Last year she paid $27,000 for ingredients and had revenue of $70,000. She is asking you to calculate both accounting and economic profits for her. Show all your calculations and explanations.
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.)
Exercise 2.3 at pg24: Say you barrowed $10,000 from a bank at 12% interest rate per year for aperiod of 10 years. How much will you have to pay back after 10 years, ifa. The bank charged you simple interest? b. The bank charged you compound interest?
2. Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 5 percent interest and uses the money in his new business. He uses a building he owns as a hangar that he could have rented out for $5,000 per year. He rents a computer for $1,000, buys office supplies for $500, rents an airplane for $6,000, pays $1,000 for fuel and maintenance, and hires one worker for $30,000. Sam's total revenue from pilot training classes equaled $90,000. Calculate Sam's Economic profit.
After grauating with a BBA in Economics, Dwight is considering going to college to get a Ph. D. in Economics. If he does not go to graduate school to get a Ph. D. in Economics, he will be earning $112483 working at Bank of America, and spend $44134 on room and board. If he goes to college to get a Ph. D. in Economics, he will spend $43012 on tuition, $20376 on room and board, and $7550 on books. What are Dwight's full cost of getting a Ph. D. in Economics? Only typing answer Please explain step by step
Abby lives and works for two periods. In the first period, she earns 1,000 coconuts while inthe second she earns 2,200 coconuts. Abby can save or borrow from a bank at the same interestrate of 10%. Abby also owns a 550 sq.ft. apartment, priced at 2 coconuts per square foot. Shecannot sell it in the first period because she needs a place to stay in the second, but she canborrow against it and sell it in the second.a. In a graph that has future consumption on the vertical axis and current consumption onthe horizontal, show how her lifetime budget constraint would look if banks do NOT requirecollateral. Make sure to compute and show the coordinates of the vertical and horizontalintercepts as well as those of the endowment point (which in the second period shouldinclude her house).b. Suppose that Abby likes to consume 2,400 coconuts in the first period. Could she do thatif banks do not require collateral? Would the outcome be Pareto optimal and why?c. Suppose now that banks do require…
At an annual interest rate of 20 percent, about how many years will it take $100 to triple in value? O a. 8 b.6 OCS O d.9
You have $40,000 of current income and $60,000 of future income. The interest rate between the current and future period is 5 percent. What is the maximum amount you could consume in the future? O $100,000 O $107,000 O $102,000 O $110,000