Question

A plot of land close to the beach could earn its owners $300/day as a parking lot or $500/day as a campground. Calculate the weekly economic rent of using the land as a campground.

Answer 1

Answer:

Weekly economic earning = $1400

Explanation:

Below is the calculation of weekly economic rent:

Given the earn at the parking lot = $300/day

Earning as a campground = $500/ day

Now, in order to find the economic rent just subtract the earning from the parking from the earning of the campground.

Economic earning  = 500 - 300

Economic earning = $200

Now, weekly economic earning = $200 x 7

Weekly economic earning = $1400