Management is valued at about twocents per pound of bananas sold. Thevalue of the capital resources is almost 7¢ /lb., and the value of the land resource is one cent per pound. There is some risk involved in being an entrepreneur, so a contingency factor is included to compensate for the likely variability in price and/or yield. The estimate used here may be low, and for planning purposes, an individual grower may wish to increase it to reflect personal experience. This entry can be interpreted assaying that the preceding analysis of a typical growing situation is a reasonable estimate, but there is a good chance that the price and/or yield could drop by 2%. The total ownership costs per pound
therefore amount to about 11 1/2¢ /lb.,consuming nearly the entire gross margin and leaving only a half cent per
pound as the economic profit. However, we must remember that an enterprise which generates any economic profit at all is "adequately profitable" in the common sense of "profit." Recall that an economic profit of at least zero means paid and that all productive resources (including "unpaid" labor) would have received a return equal to their value.