You are the manager of a medium-sized farm with 100 acres of workable land. You can farm the land yourself, rent the land using a triple net lease to another farmer for $2,000 per acre, or sell the land to a developer for $40,000 per acre. You have an investment opportunity that pays a return of 6 percent a year. What is your opportunity cost for a year if you decide to farm the land yourself?

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Opportunity cost is the value of the best alternative given u... View the full answer