### Chapter 10: Economic Analysis of Wheat Production A purely competitive wheat farmer can sell any wheat he grows for $25 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. **Instructions:** a. Complete the table to answer the following questions: - How many bushels will each of the farmer’s five acres produce? - How much revenue will each acre generate? - What are the Total Revenue (TR) and Marginal Revenue (MR) for each acre? | Acre # | That Acre’s Yield (bushels) | That Acre’s Revenue ($) | TR ($) | MR ($) | |--------|-----------------------------|------------------------|-------|-------| | 0 | - | - | $0 | - | | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | b. If the marginal cost of planting and harvesting an acre is $20,000 per acre for each of the five acres, how many acres should the farmer plant and harvest? Enter your answer: _____ acre(s) --- ### Explanation The table displays potential yield and revenue for each acre under consideration. It is essential for the farmer to calculate the economic viability of each acre, taking into account the price per bushel and the marginal production costs. By completing the table and analyzing TR and MR against the marginal cost, the farmer can determine the optimal number of acres to cultivate.
### Chapter 10: Economic Analysis of Wheat Production A purely competitive wheat farmer can sell any wheat he grows for $25 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. **Instructions:** a. Complete the table to answer the following questions: - How many bushels will each of the farmer’s five acres produce? - How much revenue will each acre generate? - What are the Total Revenue (TR) and Marginal Revenue (MR) for each acre? | Acre # | That Acre’s Yield (bushels) | That Acre’s Revenue ($) | TR ($) | MR ($) | |--------|-----------------------------|------------------------|-------|-------| | 0 | - | - | $0 | - | | 1 | | | | | | 2 | | | | | | 3 | | | | | | 4 | | | | | | 5 | | | | | b. If the marginal cost of planting and harvesting an acre is $20,000 per acre for each of the five acres, how many acres should the farmer plant and harvest? Enter your answer: _____ acre(s) --- ### Explanation The table displays potential yield and revenue for each acre under consideration. It is essential for the farmer to calculate the economic viability of each acre, taking into account the price per bushel and the marginal production costs. By completing the table and analyzing TR and MR against the marginal cost, the farmer can determine the optimal number of acres to cultivate.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Transcribed Image Text:### Chapter 10: Economic Analysis of Wheat Production
A purely competitive wheat farmer can sell any wheat he grows for $25 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on.
**Instructions:**
a. Complete the table to answer the following questions:
- How many bushels will each of the farmer’s five acres produce?
- How much revenue will each acre generate?
- What are the Total Revenue (TR) and Marginal Revenue (MR) for each acre?
| Acre # | That Acre’s Yield (bushels) | That Acre’s Revenue ($) | TR ($) | MR ($) |
|--------|-----------------------------|------------------------|-------|-------|
| 0 | - | - | $0 | - |
| 1 | | | | |
| 2 | | | | |
| 3 | | | | |
| 4 | | | | |
| 5 | | | | |
b. If the marginal cost of planting and harvesting an acre is $20,000 per acre for each of the five acres, how many acres should the farmer plant and harvest?
Enter your answer: _____ acre(s)
---
### Explanation
The table displays potential yield and revenue for each acre under consideration. It is essential for the farmer to calculate the economic viability of each acre, taking into account the price per bushel and the marginal production costs. By completing the table and analyzing TR and MR against the marginal cost, the farmer can determine the optimal number of acres to cultivate.
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