Mr. jernigan owns a piece of land on which he grows corn. corn production annually requires $2 comma 0002,000 in seed, $3 comma 0003,000 in fertilizer, and $6 comma 0006,000 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 $45 comma 00045,000 per year.

Question

Business

Novak

16 November, 05:54

Mr. jernigan owns a piece of land on which he grows corn. corn production annually requires $2 comma 0002,000 in seed, $3 comma 0003,000 in fertilizer, and $6 comma 0006,000 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 $45 comma 00045,000 per year.

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Answers (1)

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Aaden Patterson · Answer 1

economic costs = $56,000

Explanation:

given data

seeds = $2,000

fertilizer = $3,000

pesticides = $6,000

earning = $45,000

solution

total Accounting cost of Mr. jernigan is

total Accounting cost of Mr. jernigan = $2,000 + $3,000 + $6,000

total Accounting cost of Mr. jernigan = $11,000

and

economic costs = accounting costs + opportunity costs

economic costs = $11,000 + $45,000

economic costs = $56,000