Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations.

What is the economic profit at the family farm?

Question

Jovanni Crawford

Mathematics

17 October, 13:10

Suppose that a small family farm sold its output for $100,000 in a given year. The family spent $25,000 on fuel, $40,000 on seed, fertilizer, and pesticides, and $25,000 on equipment, including maintenance. The family members could have earned $20,000 working at other occupations.

What is the economic profit at the family farm?

+3

Answers (1)

Know the Answer?

Brenda Bond · Answer 1

First we have to evaluate our income: $100,000. And then the expenditure (sum of all expenses) : $25,000 + $40,000 + $25,000 = $90,000. This is the expenditure, taken away from our income we get $10,000, this is the economic profit of the family farm.