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Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he

rents equipment for ​$50,000 a​ year, and he pays workers ​$100,000 in wages. In​ return, he produces 150,000 baskets of peaches per​ year, which sell for ​$3.00 each. Suppose the interest rate on savings is 2 percent and that the farmer could otherwise have earned ​$35,000 as a shoe salesman.

What is the​ farmer's economic​ profit?

The peach farmer earns economic profit of ​$_______?

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