Mary is a soybean farmer who spends part of her day giving cooking lessons. Mary
ID: 1151103 • Letter: M
Question
Mary is a soybean farmer who spends part of her day giving cooking lessons. Mary charges $25 an hour for her cooking lessons. One spring day, she spends 10 hours in the field planting $130 worth of seeds on her farm. She anticipates that these seeds will produce $300 worth of soybeans that she can sell in the market. What is Mary's economic profit or loss? If your answer is a loss, enter a negative sign before the value. $ ______Please enter a whole number, with no decimal point. Mary is a soybean farmer who spends part of her day giving cooking lessons. Mary charges $25 an hour for her cooking lessons. One spring day, she spends 10 hours in the field planting $130 worth of seeds on her farm. She anticipates that these seeds will produce $300 worth of soybeans that she can sell in the market. What is Mary's economic profit or loss? If your answer is a loss, enter a negative sign before the value. $ ______
Please enter a whole number, with no decimal point.
Explanation / Answer
Total revenue = $300
Cost of seeds = $130
Time spent to plant seeds = 10 hours
Mary provides cooking lessons and charges $25 per hour. If she works in field for 10 hours then this time would not be available for giving cooking lessons and she will lose out on earnings from cooking lessons.
Earning foregone = 10 * 25 = $250
Calculate the economic profit -
Economic profit = Total revenue - Cost of seeds - Earning foregone = $300 - $130 - $250 = -$80
The Mary's economic profit is $-80.