Given a Certain Amount of Land Potentially Devoted to Farming

question 79

Multiple Choice

Given a certain amount of land potentially devoted to farming, one will first use the more fertile regions where production costs are lowest before using the less fertile regions. The consequence of this logical strategy is that the production costs increase as production increases. A certain landowner has enough land to produce 10⁶ bushels of a particular crop, and the production costs, c, of the n^th bushel is described with the equation . If the market price is p for this particular crop, the profit for producing the n^th bushel is . If p = $5.25, how much total profit could the farmer expect to obtain by producing bushels.

• A) $377,600
• B) $289,200
• C) $350,000
• D) $322,400

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Definitions:

Financial Advantage

The benefit or upper hand that a business or individual gains by optimizing financial decisions and resource allocations to enhance wealth or profitability.

Profitable Product

A product that generates more revenue than the costs associated with producing and selling it.

Variable Costs

Expenses that fluctuate with changes in production volume or business activity levels.

Special Order

An order for goods or services that is outside the company's normal production or service offerings, often requiring special pricing or terms.