Question

1-26 A farmer must decide what combination of seed, G water, fertilizer, and pest control will be most prof- itable and environmentally conscious for the coming
year. The local agricultural college did a study of this farmers situation and prepared the following table Direct Extra-market Cost/Acre $150 450 250 200 Plan Cost/Acre $750 800 1000 1300 Income/Acre $1200 1400 1500 1650 The last page of the colleges study was torn off and hence the farmer is not sure which plan the agri- cultural college recommends. Which plan should the farmer adopt considering (a) only the direct costs, (b) both the direct and extra-market costs?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

1) Plan B; Because it generates the highest profit.

Working:

Plan

Direct Cost/ Acre

Income/Acre

Profit

A

750

1200

450

B

800

1400

600

C

1000

1500

500

D

1300

1650

350

 

2) Plan A; Because it generates the highest profit.

Working:

 

Plan

Direct Cost/ Acre

Extra-market Cost/acre

Income/Acre

Profit

A

750

150

1200

300

B

800

450

1400

150

C

1000

250

1500

250

D

1300

200

1650

150

Add a comment
Know the answer?
Add Answer to:
1-26 A farmer must decide what combination of seed, G water, fertilizer, and pest control will...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Problem 1 eruliner, and pest control will be A farmer must decide what combination of soed,...

    Problem 1 eruliner, and pest control will be A farmer must decide what combination of soed, water, fertilizer, and post con most profitable and environmentally conscious for the coming year. The local lowing table agricultural college did a study of this farmer's situation and prepared the following comel Acre Plan Direct Cost Acre Ex-Market COSACE 5750 800 1000 1300 S1200 1400 1500 1650 The last page of the college's study was tom off, and hence the farmer is not sure...

  • 1)A farmer must decide what combination of seed, water, fertilizer, and pest control will be most...

    1)A farmer must decide what combination of seed, water, fertilizer, and pest control will be most profitable for the upcoming year. following table; The local agricultural college did a study of this farmer's situation and prepared the Plan Cost/acre (S) Income/acre (S) 575 1700 1950 2325 900 2100 2250 2600 List the plans in order of most desirable to least, and briefly explain why. (2 pts) 2) A start-up company is planning on manufacturing a new product. the quantity that...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT