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Unformatted text preview: agricultural producer. Therefore, you incur another opportunity cost, the rent you could have received. Assume you could have rented an acre of your land out at $60.00 per acre, but chose to put in a crop of corn yourself. At the end of the season you determine that you cleared $35.00 an acre accounting for all operating and ownership costs. Did you really make money? An economist will tell you no, that you really lost money. You could have rented that land for $60 per acre, sat back, and enjoyed life during the growing season. Instead, you busted your backside, worried yourself about the weather and the market, and cleared $35.00 an acre. An economist would point out that you really lost $25.00 an acre from your choice ($35 - $60 opportunity cost)....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10
- Opportunity Cost