Question
In: Economics
(10 marks) A farmer has discovered that on his farm, he can get 30 bushels of...
A farmer has discovered that on his farm, he can get 30 bushels of corn per acre if he applies no fertilizer. When he applies N pounds of fertilizer to an acre of land, the marginal product of fertilizer is 1−N/200 bushels of corn per pound of fertilizer.
(a) If the price of corn is $3 a bushel and the price of
fertilizer is $p per pound (where p < 3), how many pounds of
fertilizer should be use per acre in order to maximize profits?
(b) Write down a function that states the farmer’s yield per acre as a function of the amount of fertilizer he uses and explain why it is representative of the yield per acre.
(c) The farmer’s neighbor, Johan has better land than
him, as a matter of fact, for any amount of fertilizer that was
applied, he gets exactly twice as such corn per acre with the same
amount of fertilizer. How much fertilizer will Johan use per acre
when the price of corn $3 a bushel and the price of fertilizer is
$p per pound.
Solutions
Rahul Sunny answered 1 week agoRelated Solutions
On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he...
On a 100-acre farm, a farmer is able to produce 3,000 bushels of
wheat when he hires 2 workers. He is able to produce 4,400 bushels
of wheat when he hires 3 workers. Which of the following
possibilities is consistent with the property of diminishing
marginal product?
Group of answer choices
The farmer is able to produce 5,600 bushels of wheat when he
hires 4 workers.
The farmer is able to produce 5,400 bushels of wheat when he
hires 4...
A farmer weighs 10 randomly chosen watermelons from his farm and he obtains the following values...
A farmer weighs 10 randomly chosen watermelons from his farm and
he obtains the following values (in lbs):
7.72,9.58,12.38,7.77,11.27,8.80,11.10,7.80,10.17,6.00
Assuming that the weight is normally distributed with mean μ and
and variance σ2, find a 95% confidence interval for μ.
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He
grows his vegetables for sale to food companies. On November 1, he
sells his vegetables to Granny’s Pie Company for $65,000, inclusive
of 13% VAT. Granny’s Pie Company uses his vegetables to produce
savory meat and vegetable pies (they’re huge in the UK). After the
production of the pies is complete, Granny’s Pie Company sells the
pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13%
VAT....
Bob the Farmer grows vegetables at his farm in South Dakota. He grows his vegetables for...
Bob the Farmer grows vegetables at his farm in South Dakota. He
grows his vegetables for sale to food companies. On November 1, he
sells his vegetables to Granny’s Pie Company for $65,000, inclusive
of 13% VAT. Granny’s Pie Company uses his vegetables to produce
savory meat and vegetable pies (they’re huge in the UK). After the
production of the pies is complete, Granny’s Pie Company sells the
pies to Winn Dixie Grocery Stores for $140,000, inclusive of 13%
VAT....
A farmer knows from experience that his wheat harvest Q (in bushels) has th
A farmer knows from experience that his wheat
harvest Q
(in
bushels)
has the probability distribution given by:
Q
= 150 with probability 0.30 ,
=
170 with probability 0.45,
=200 with
probability 0.25;
note
that the probabilities add up to 1 as they are required by a
probability
distribution.
Suppose the demand function he faces in the market place is given
by:
p = 320 - 0.5 Q
where p
= price in dollars per bushel.
Let R = total revenue = p x Q. [Note: You may
find it
convenient
to first derive the...
Suppose a farmer is interested in developing a breeding program on his chicken farm. The farmer...
Suppose a farmer is interested in developing a breeding program
on his chicken farm. The farmer would like to artificially select
for egg weight, egg shape, shell color, and shell thickness. In a
large population of his chickens, the farmer has measured these
four continuous egg traits of interest and calculated their
variances, shown in the table below.
Variance
Weight
Shape
Shell Color
Shell Thickness
Phenotypic
166
1043
157
176
Additice Genetic
4
140
83
22
Environmental
83
522
95.4...
A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His...
A purely competitive wheat farmer can sell any wheat he grows
for $10 per bushel. His five hectares of land show diminishing
returns, because some are better suited for wheat production than
others. The first hectare can produce 1000 bushels of wheat, the
second hectare 900, the third 800, and so on. Fill in the table
given below to answer the following questions. How many bushels
will each of the farmer’s five hectares produce? How much revenue
will each hectare...
The farmer produces 899 bushels of wheat at a total cost of $6 per bushel. He...
The farmer produces 899 bushels of wheat at a total cost of $6
per bushel. He sells all of the wheat to Firm F for $11 per bushel.
Firm F produces 500 pounds of flour from the wheat at a total cost
of $23 per pound (including the amount paid to the farmer for the
wheat). Firm F sells 475 pounds of flour to consumers for $31 per
pound. There are no other firms in this simple economy. What is...
A farmer has decided to use a new additive to grow his crops. He divided his...
A farmer has decided to use a new additive to grow his crops. He
divided his farm into 10 plots and kept records of the corn yield
(in bushels) before and after using the additive. The before (first
row) and after (second row) results from the 10 different plots are
shown below.
Corn Yield
Before 9 9 8 7 6 8 5 9 10 11
After 10 9 9 8 7 10 6 10 10 12
You wish to test...
(a) Farmer Sherry can grow wheat and barley. She can grow 75 bushels of wheat or...
(a) Farmer Sherry can grow wheat and barley. She can grow 75
bushels of wheat
or 125 bushels of barley on a hectare of her land for the same
cost. The price of wheat is $2 per bushel
and the price of barley is $0.80 per kilogram. Show the benefits to
Sherry of specialization. What should
she specialize in? Why ? (2)
(b) You work at your school, making $15 per hour. Yesterday, you
decided to cancel your two-
hour...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- -What is the meaning of engineering economy? - As students of Engineering College, why do you...
- Sentinel While Loop Lab Convert Lab 11 from a counter controlled WHILE loop to a sentinel...
- 1. How should developing countries promote technological innovation in order to generate economic growth? 2. Why...
- I'd like to get brief explanations of those questions below. Cargo utilizing artificial intelligence 1. operational...
- There are numerous risks, which domestic firms doing business overseas face. The distance between two nations,...
- Two terrestrial ecosystems based on photosynthesis and chemolithosynthesis (hydrothermal vents) trap their energy from specific energy...
- The virus has caused governments to tell people that they can not go out or go...
ADVERTISEMENT