Your Farm Encompasses 400 Acres, and You Are Planning to Grow

question 147

Multiple Choice

Your farm encompasses 400 acres, and you are planning to grow soy beans, corn, and wheat in the coming planting season. Fertilizer costs per acre are: $5 for soy beans, $2 for corn, and $1 for wheat.You estimate that each acre of soy beans will require an average of 5 hours of labor per week, while tending to corn and wheat will each require an average of 2 hours per week. Based on past yields and current market prices, you estimate a profit of $3,000 for each acre of soy beans, $2,000 for each acre of corn, and $1,000 for each acre of wheat. You can afford to spend no more than $2,400 on fertilizer, and your farm laborers can supply 2,800 hours per week. How many acres of each crop should you plant to maximize total profits In this event, will you be using all the available labor ?

• A)you should plant 400 acres of soy beans and no acres of corn or wheat, in this event you will use all the available labor
• B) you should plant 400 acres of corn and no acres of soy or wheat, in this event you will use all the available labor
• C) you should plant 400 acres of corn and no acres of soy or wheat, in this event you will not use all the available labor
• D) you should plant 400 acres of soy and no acres of corn or wheat, in this event you will not use all the available labor
• E) you should plant 400 acres of wheat and no acres of soy or corn, in this event you will not use all the available labor

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Definitions:

Consumption

The process of using goods and services for personal needs or wants, often leading to a decrease in the quantity of the consumed goods.

Utility Function

A mathematical representation that assigns a level of satisfaction or utility to combinations of goods and services consumed.

Spaghetti Consumption

The quantity or rate at which individuals or populations eat spaghetti, of interest in studies of dietary patterns, cultural habits, and nutrition.

Consumptions

The process of using up goods and services to satisfy individual or collective needs or desires, often analyzed in economic contexts.