Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $6 comma 000 in seed, $ 9 comma 000 in fertilizer, and $10 comma 000 in pesticides. Mr. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance, earning $25 comma 000 per year. Part 2 Suppose another farmer has just offered to pay Mr. Jernigan rent of $10 comma 000 per year for use of the land. Part 3 If Mr. Jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on his land? What will be his economic costs? Part 4 Mr. Jernigan's accounting costs will be $ enter your response here per year, and his economic costs will be $ enter your response here per year. (Enter numeric responses using integers.)
Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $6 comma 000 in seed, $ 9 comma 000 in fertilizer, and $10 comma 000 in pesticides. Mr. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance, earning $25 comma 000 per year. Part 2 Suppose another farmer has just offered to pay Mr. Jernigan rent of $10 comma 000 per year for use of the land. Part 3 If Mr. Jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on his land? What will be his economic costs? Part 4 Mr. Jernigan's accounting costs will be $ enter your response here per year, and his economic costs will be $ enter your response here per year. (Enter numeric responses using integers.)
Chapter2: Scarcity And Opportunity Costs
Section: Chapter Questions
Problem 14E
Related questions
Question
Transcribed Image Text:Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $6 comma 000 in seed, $
9 comma 000 in fertilizer, and $10 comma 000 in pesticides. Mr. Jernigan uses his own labor to grow the corn and
therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance,
earning $25 comma 000 per year. Part 2 Suppose another farmer has just offered to pay Mr. Jernigan rent of $10
comma 000 per year for use of the land. Part 3 If Mr. Jernigan refuses to rent the land to another farmer, then what will
be his accounting costs from farming corn himself on his land? What will be his economic costs? Part 4 Mr. Jernigan's
accounting costs will be $ enter your response here per year, and his economic costs will be $ enter your response
here per year. (Enter numeric responses using integers.)
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