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 S70,000 a year, and he pays workers $110,000 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 3 percent and that the farmer could otherwise have earned $45,000 as ashoe salesman.What is the farmer's economic profit?The peach farmer earns economic profit of S . (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.)

Both Economic profit and Accounting ptofit solved below,

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 w esman he farmer's economic profit? ch farmer eams economic proft of SO (Enter your response as an integer) he farmer's accounting profit?

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 w esman he farmer's economic profit? ch farmer eams economic proft of SO (Enter your response as an integer) he farmer's accounting profit?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 11PAE

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Question

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 S70,000 a year, and he pays workers $110,000 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 3 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 earns economic profit of S . (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.)

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