Answer:
$1800
$2600
Step-by-step explanation:
Profit = Total revenue - Total cost
Total revenue = (40 bushels × $7) x 20 acres = $5,600
Total cost = 20 x ($30 + $70 + $80) = $3,600
Profit = $5600 - $3600 = $2000
If the farmer wants to make a profit of at $10 per acre, total profit would be $10 × 20 = $200
The most the farmer would be willing to pay as rent would be : $2000 - $200 = $1800
B. If wheat price rose to $8 :
Total revenue = (40 bushels × $8) x 20 acres = $6400
Profit = $6,400 - $3,600 = $2,800
If the farmer wants to make a profit of at $10 per acre, total profit would be $10 × 20 = $200
The most the farmer would be willing to pay as rent would be : $2,800 - $200 = $2,600
I hope my answer helps you