Asked by
SketBloopnorgg burek
on Oct 14, 2024
Verified
when Farmer Hoglund applies N pounds of fertilizer per acre, the marginal product of fertilizer is 1 N/200 bushels of corn.If the price of corn is $4 per bushel and the price of fertilizer is $.40 per pound, then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?
A) 360
B) 94
C) 180
D) 368
E) 200
Marginal Product
Marginal product is the additional output resulting from the use of one more unit of a variable input, holding other inputs constant.
Fertilizer
Substances used to supply essential nutrients to plants, aiming to enhance growth, yields, and quality of agricultural produce.
Bushels
A unit of volume that is used in dry measure, equal to 32 quarts or approximately 35.2 liters.
- Decode the relation between the cost involved in inputs, the pricing strategy for outputs, and aiming for the pinnacle of profit.
- Utilize methodologies of production functions to calculate optimal input levels for the enhancement of profits.
- Scrutinize how price alterations in inputs and outputs impact profit maximization through optimal input level adjustments.
Verified Answer
RA
Learning Objectives
- Decode the relation between the cost involved in inputs, the pricing strategy for outputs, and aiming for the pinnacle of profit.
- Utilize methodologies of production functions to calculate optimal input levels for the enhancement of profits.
- Scrutinize how price alterations in inputs and outputs impact profit maximization through optimal input level adjustments.