lectur23-page1

lectur23-page1 - $9 acre because I am forgoing the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
PRODUCTION COSTS SOME MORE DECISION MAKING 1. You own 200 acres of land and considering : 100 acres of soybeans 100 acres of corn TR / ac. - TC / ac. = TNR / ac. TR / ac. - TC / ac. = TNR / ac. TNR / ac. = $10 TNR / ac. = $9 What is the opportunity cost of land for growing soybeans?
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $9 / acre, because I am forgoing the opportunity to make $9 / ac. in order to make $10 / ac. Therefore economic profit from raising soybeans is : $10 / ac. - $9 / ac. = $1 / ac....
View Full Document

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.

Ask a homework question - tutors are online