Mr. jernigan owns a piece of land on which he grows corn. corn production annually requires $4 comma 000 in seed, $5 comma 000 in fertilizer, and $8 comma 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 $25 comma 000 per year. suppose another farmer has just offered to pay mr. jernigan rent of $20 comma 000 per year for use of the land. if mr. jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on his land? what will be his economic costs? mr. jernigan's accounting cost will be $ per year, and his economic costs will be $ per year.

Accounting cost: 17,000

Economic cost:   62,000

Explanation:

Accounting result: sum of explicit revenues less explicit cost:

explicit cost:

$4,000 in seed, $5,000 in fertilizer, and $8000 in pesticides

Total: 17.000

Economic result: sum of accounting result and opportunity cost for each factor

Where:

opportunity cost is the cost for the bvest rejected alternative of doing this activity.

Labor factor:        25,000 insurance seller wages

Land  factor:         20,000

Total opportunity: 45,000

Accounting cost    17,000

Economic cost:      62,000

answer; (a) calling people who have not shown interest in the product and asking them to buy it;

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%