Question #3. Assume that crop rent gradients for three different crops are a function of crop type and soil fertility. The rent gradient for broccoli is -.02r+3. The rent gradient for spinach is -.005r+2 and the rent gradient for wheat is -.00167r+1. Given a farm with 600 acres, how many acres would be planted with each crop?How would this change if the government decides to subsidize spinach production by $0.50—shifting the curve out by $0.50?

Given , Rent Gradient for Broccoli = 3 - 0.02r Rent Gradient for Spinach = 2 -0.005r Rent…

Answered: Assume that crop rent gradients for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question #3. Assume that crop rent gradients for three different crops are a function of crop type and soil fertility. The rent gradient for broccoli is -.02r+3. The rent gradient for spinach is -.005r+2 and the rent gradient for wheat is -.00167r+1.

Given a farm with 600 acres, how many acres would be planted with each crop?
How would this change if the government decides to subsidize spinach production by $0.50—shifting the curve out by $0.50?

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