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Suppose the Entrepreneur Could Earn $1,000 as an Employee Elsewhere

Question 3

Multiple Choice

 Assume an apple farmer incurs the following costs and revenues:  Fertilizer: $200 Seeds: $75 Water: $250 Wages: $750 Property taxes: $600 Interest payments on borrowed funds: $1,200 Sales of apples: $4,000 Table 22.1\begin{array}{l}\begin{array} { | l | r | } \hline \text { Assume an apple farmer incurs the following costs and revenues: } \\\hline \text { Fertilizer: } & \$ 200 \\\hline \text { Seeds: } & \$ 75 \\\hline \text { Water: } & \$ 250 \\\hline \text { Wages: } & \$ 750 \\\hline \text { Property taxes: } & \$ 600 \\\hline \text { Interest payments on borrowed funds: } & \$ 1,200 \\\hline \text { Sales of apples: } & \$ 4,000 \\\hline\end{array}\\\text { Table } 22.1\end{array} Suppose the entrepreneur could earn $1,000 as an employee elsewhere.This means the economic profit is


A) -$925.
B) -$75.
C) -$1,000.
D) $0.

Correct Answer:

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