lectur24-page1 - $ 15,000/year E(total variable cost)= $...

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ACCOUNTING PROFIT, ECONOMIC PROFIT, NORMAL PROFIT ACCOUNTING COST EXAMPLE: Current operations: March 1 owns 500 acres of very good cropland averaging 100 bushels per acre. E(price)= $3.00/bu. E(output)= 50,000 bushels Total sunk cost =
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Unformatted text preview: $ 15,000/year E(total variable cost)= $ 80,000 E(total cost)= $ 95,000 E(total revenue)= $150,000 E(total cost)= $ 95,000 E(total net revenue)= $ 55,000 (accounting profit) E(average total cost)= $ 1.90/bu....
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