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A Mississippi cotton farmer has a chance to rent 300 additional acres for $100 per acre this year, but he would have to give up

A Mississippi cotton farmer has a chance to rent 300 additional acres for $100 per acre this year, but he would have to give up his second job of driving a truck, which pays him $1,100 a month for 8 months of the year. He will also save costs for the truck of $.50 per mile. He drives an average of 35 miles per day for 160 days each year. He anticipates that his costs for growing cotton will be $300 per acre. His expected cotton yield is 500 pounds per acre, and his expected selling price for it is $.75 per pound. He would also receive a government payment of $12 per acre. What is the net change in profit if the farmer decides to rent the additional acreage?

b.

($17,100)

c.

$500

d.

($9,900)

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