Question list Question 7 0 Question 8 0 Question 9 0 Question 10 0 Question 11 0 Question 12 0 Question 13 0 Question 14 I Maryland farmers turn from tobacco to flowers Maryland tobacco farmers will be subsidized if they switch from growing tobacco to growing crops such as flowers and organic vegetables. Source: The New York Times, February 25, 2001 How does offering farmers a payment to exit tobacco growing inuence the opportunity cost of growing tobacco? What is the opportunity cost of using the equipment owned by a tobacco farmer? (E Offering farmers a payment to exit tobacco growing the opportunity cost of growing tobacco. The opportunity cost of using the equipment owned by a tobacco farmer is {'er A. does not change; the next best alternative forgone, which could be the production of owers and organic vegetables I2, ,3 B. decreases; the sum ofthe implicit and explicit costs of using the tobacco equipment [:3 C. decreases; the explicit cost of using the tobacco equipment ;. D. increases; the implicit cost of using the tobacco equipment ;. E. increases; the next best alternative forgone, which could be the production of owers and organic vegetables Marina, a programmer, earned $35,000 in 2018, but in Question list K Question Facts 2019, she opened a landscaping business. After one year, she submitted the information on the right to She stopped renting out her cottage for $3,500 her accountant. year and used it as her business premises. The market value of the cottage increased from O Question 7 Marina's accountant recorded the depreciation on Marina's $98,000 to $105,000. cottage during 2019 as $9,000. ii What did the accountant say Marina's profit or loss was in She spent $20,000 on materials, phone, utilities etc. 2019? O Question 8 She leased machines for $3,000 a year. iv She paid $10,000 in wages. O Question 9 According to the accountant, Marina's profit in 2019 is She used $15,000 from her savings account, which earns 5 percent a year interest vi O A. $116,000 She borrowed $20,000 at 10 percent a year fro O Question 10 the bank. O B. $16,000 vij She sold $160,000 worth of landscaping. O C. $25,000 O D. $58,750 i Normal profit is $25,000 a year. O Question 11 O E. $67,750 O Question 12 O Question 13 O Question 14 O Question 15The table shows some of the costs of production for Question list K Frank's Nails. The nail market is a perfectly competitive Total Average Average Average roduct fixed variable total market. Marginal boxes cost cost cost cost At a market price of $88.98 a box, what quantity does er day) (dollars per box) Frank's produce and what is the firm's economic profit in the 76.00 57.00 133.00 O Question 7 short run? 43.00 2 38.00 50.00 88.00 Do firms enter or exit the market and what is Frank's economic profit in the long run? .... 34.99 O Question 8 3 25.33 45.00 70.33 33.01 4 19.00 42.00 61.00 38.00 O Question 9 At a market price of $88.98 a box, Frank's produces 5 15.20 41.20 56.40 boxes of nails. 46.02 >>> Answer to 1 decimal place. 6 12.67 42.00 54.67 Question 10 In the short run, Frank's maximizes its profit and 63.00 makes an economic profit of $ a day. 10.86 45.00 55.86 88.98 >>> Answer with a positive number. 8 9.50 50.50 60.00 Question 11 In the long run, firms the nail market. O A. neither enter nor exit O Question 12 O B. exit O C. enter O Question 13 O Question 14