Suppose the Entrepreneur Could Earn $1,000 as an Employee Elsewhere

question 81

Multiple Choice

$$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Assume an apple farmer incurs the following costs and revenues: } \\\hline \text { Fertilizer: } & \$ 200 \\\hline \text { Seeds: } & \$ 75 \\\hline \text { Water: } & \$ 250 \\\hline \text { Wages: } & \$ 750 \\\hline \text { Property taxes: } & \$ 600 \\\hline \text { Interest payments on borrowed funds: } & \$ 1,200 \\\hline \text { Sales of apples: } & \$ 4,000 \\\hline\end{array}\\\text { Table } 22.1\end{array}$$ Suppose the entrepreneur could earn $1,000 as an employee elsewhere.This means the accounting profit is

• A) $1,525.
• B) $925.
• C) -$75.
• D) -$1,000.

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Definitions:

Urbanization

The process by which towns and cities grow and more people begin to live and work in urban areas, often associated with changes in lifestyle, economy, and environment.

Paternalistic Policies

Government policies that are designed to regulate and intervene in people's lives in a manner that is intended to be in their best interest, analogous to a paternal relationship.

Industrialists

Entrepreneurs or business owners in the industrial sector, who played a significant role in the development and expansion of industries during the Industrial Revolution.

Avant-Garde

Innovative, pioneering work, particularly in the arts, that challenges established norms and practices, often aiming to push the boundaries of cultural expression.