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 8 months agoRelated Solutions
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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
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A farmer knows from experience that his wheat harvest Q (in bushels) has th
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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
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p = 320 - 0.5 Q
where p
= price in dollars per bushel.
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convenient
to first derive the...
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Corn Yield
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After 10 9 9 8 7 10 6 10 10 12
You wish to test...
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