1. A farmer has 1000 acres of land on which corn, wheat, or soybeans can be grown. He also knows that each acre of corn requires 5 days of labor and yields a profit of $20. Each acre of wheat requires 9 days of labor and yields a profit of $40. Each acre of soybeans requires 10 days of labor and yields a profit of $50. The farmer has enough water for any of these crops and can count on his employees to supply as many as 7500 days of labor.
a) To demonstrate that you understand the situation, state whether you think it would be allowable for the farmer to grow some amount of each crop, or if the farmer must choose only one crop to grow.
b) Does the farmer have to use all 1000 acres of his land? Why or why not?
c) Based on the amount of labor that is available, what is the maximum number of acres of corn that the farmer could grow? How much profit would that provide?
d) What is the maximum profit the farmer could make if he grew only wheat?
e) If it were possible for the farmer to either obtain more land or to cheaply hire more laborers, which would be better? Why?
1 answer
Ansewer