HW 2-ECON 104 - Week 4-Lesson 3 4-ECON 104 Homework 2 Use the information below to answer questions 1-6 Consider an economy that produces only two goods

HW 2-ECON 104 - Week 4-Lesson 3 4-ECON 104 Homework 2 Use...

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Week 4-Lesson 3 & 4-ECON 104 Homework 2 Use the information below to answer questions 1-6Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie’s Farmsis the only company that grows fresh apricots, while Darryl’s Dried Victuals is the only producer of dried apricots. Fannie’s sells some of its apricots directly to consumers for consumption. The relevant revenue and cost information for each of the two firms in the economy is given below:Darryl’s Dried VictualsRevenue from selling dried apricots:$2,300,000Cost of buying fresh apricots from Fannie’s:1,200,000Interest on funds borrowed to buy drying racks:250,000Wages paid to employees600,000Taxes100,000Fannie’s FarmsRevenue from selling fresh apricots:$2,000,000Rent on land (including apricot trees)300,000Wages to employees1,200,000Taxes200,0001.Darryl’s profit from selling dried apricots is: A.$100,000B.$150,000C.$300,000D.$310,000E.
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  • Fall '10
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  • Economics, Darryl, gross domestic product, Final goods, Measures of national income and output, Apricot, fresh apricots

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