Question

Mr. jernigan owns a piece of land on which he grows corn. corn production annually requires ​$2 comma 0002,000 in​ seed, ​$3 comma 0003,000 in​ fertilizer, and ​$6 comma 0006,000 in pesticides. mr. jernigan uses his own labor to grow the corn and therefore hires no workers. if mr. jernigan did not use his time to grow​ corn, he would instead be able to sell​ insurance, earning ​$45 comma 00045,000 per year.

Answer 1

economic costs = $56,000

Step-by-step explanation:

given data

seeds = $2,000

fertilizer = $3,000

pesticides = $6,000

earning ​= $45,000

solution

total Accounting cost of Mr. jernigan is

total Accounting cost of Mr. jernigan = $2,000 + $3,000 + $6,000

total Accounting cost of Mr. jernigan = $11,000

and

economic costs = accounting costs + opportunity costs

economic costs = $11,000 + $45,000

economic costs = $56,000