Which choice maximizes economic profit

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Question 1: If a farmer receives 3% profits from production increases from the purchase of a new tractor, but could have received a 4% return from interest on a 10-year constant maturity bond, this represents a sunk cost. True/False

Question 2: With some extra funds, the farmer can either receive 3% profits from production increases or a 4% return from interest on a 10-year constant maturity bond. Given this information, which choice maximizes economic profit?

Reference no: EM132936121

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