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lectur23-page2 - A neighbor asks you to disk a 30 acre...

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When we own the land we must include the opportunity cost of land. Therefore total cost must include the opportunity costs of all factors of production we OWN!! 2. Assume you purchased a tractor last year for $25,000.
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Unformatted text preview: A neighbor asks you to disk a 30 acre field for him and he offers you $5.00 / ac. Should you accept his offer? TR = $30 /ac X $5.00 /ac. = $150...
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