Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 29

At the beginning of the growing season, Cecil planted 10 acres of wheat at a cost of $5,000. Now it is harvest time. Each acre will produce 40 bushels of wheat, and wheat sells for $3 per bushel. Harvesting the wheat will cost Cecil $1,500. What does cost-benefit analysis suggest that Cecil do? Most importantly, why?