A Farmer in Egypt Owns 50 Acres of Land

question 64

Essay

A farmer in Egypt owns 50 acres of land. He is going to plant each acre with cotton or corn. Each acre planted with cotton yields $400 profit; each with corn yields $200 profit. The labor and fertilizer used for each acre are given in the table below. Resources available include 150 workers and 200 tons of fertilizer.
-(A) Formulate a linear programming model that will enable the farmer to determine the number of acres that should be planted cotton and/or corn in order to maximize his profit.
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(B) Find an optimal solution to the model in (A) and determine the maximum profit.
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(C) Implement the model in (A) in Excel Solver and obtain an answer report. Which constraints are binding on the optimal solution?
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(D) Obtain a sensitivity report for the model in (A). How much should the farmer be willing to pay for an additional worker?
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(E) Suppose the farmer hires 10 additional workers. Can you use the sensitivity analysis obtained for (D) to determine his expected profit? Would his planting plan change? Explain your answer.
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(F) Suppose the farmer now wants to hire 20 additional workers, instead of just 10. Can you use the sensitivity analysis obtained for (D) to determine his expected profit? Explain your answer.

Identify how price changes of goods affect the consumption of complementary and substitute goods.

Understand the concept of consumer equilibrium and how it can be achieved.

Understand different international business strategies (e.g., licensing, strategic alliance, exporting) and their characteristics.

Recognize various staffing models used by international businesses (e.g., ethnocentric, polycentric, geocentric, regiocentric) and their application.

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Definitions:

Rural Area

Geographic areas that are located outside towns and cities, characterized by sparse population density and primarily agricultural land use or natural settings.

Institutional Racism

Forms of racism that are embedded as normal practice within society or an organization, leading to discrimination in criminal justice, employment, housing, health care, political power, and education, among others.

Ethnographic Study

A qualitative research method focused on observing and documenting the culture, practices, and behaviors of people within their natural settings.

Heterosexual Persona

An identity or behavior pattern that conforms to societal norms of attraction to the opposite sex.