Given a Certain Amount of Land Potentially Devoted to Farming

question 8

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 = $5.50, how much total profit could the farmer expect to obtain by producing bushels.

• A) $668,400
• B) $444,300
• C) $600,000
• D) $531,600

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Definitions:

Marginal Product

The marginal product is the additional output gained by employing one more unit of input, such as labor, in the production process.

Bouquets

Arrangements of flowers, often decorative and used as gifts or for special occasions.

Florist

A professional or business that specializes in the arrangement and sale of flowers and floral displays.

Production Function

A mathematical relation between quantities of input and output in production, specifying the maximum output achievable from different combinations of input.