Question

Question 5 Tries remaining: 2 Points out of 10.00 Suppose you own an acre of land. You could grow crops on that land. The cost of seeds is $100. The crops you grow from those seeds will sell for $350. You could also rent the land to another farmer. The rent you could earn is $300. Calculate your economic profit. (Do not include a $ sign in your answer.) Flag question Answer: Check

Answer 1

1) Economic profit = Total revenue - Implicit cost -Explicit cost

Here Revenue = 350; Implict cost = 300; Explicit cost = 100

Economic profit = Total revenue - Implicit cost -Explicit cost

= 350 - 300 - 100

= -50

2)

TC = 100 + 2q + 0.5q2

MC = 100 *0 + 2 * 1 + 0.5*2q = 2 + q

Thus MC of 10th unit = 2 + 10 = 12