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Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, and
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, and he pays workers $120,000 in wages. In return, he produces 150,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 4 percent and that the farmer could othenivise have earned $30,000 as a shoe salesman. What is the farmer's economic prot? The peach farmer earns economic prot of $D. (Enter your response as an integer.) What is the farmer's accounting prot? The peach farmer earns accounting prot of $|:|. (Enter your response as an integer.)
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