G 1-26 A farmer must decide what combination of seed, water, fertilizer, and pest control will be most prof- itable and environmentally conscious for the coming year. The local agricultural college did a study of this farmer's situation and prepared the following table. Plan A B C D Direct Cost/Acre $750 800 1000 1300 Extra-market Cost/Acre $150 450 250 200 Income/Acre $1200 1400 1500 1650 The last page of the college's study was torn off, and hence the farmer is not sure which plan the agricultural college recommends. Which plan should the farmer adopt considering: (a) only the direct costs, (b) both the direct and extra-market costs?
G 1-26 A farmer must decide what combination of seed, water, fertilizer, and pest control will be most prof- itable and environmentally conscious for the coming year. The local agricultural college did a study of this farmer's situation and prepared the following table. Plan A B C D Direct Cost/Acre $750 800 1000 1300 Extra-market Cost/Acre $150 450 250 200 Income/Acre $1200 1400 1500 1650 The last page of the college's study was torn off, and hence the farmer is not sure which plan the agricultural college recommends. Which plan should the farmer adopt considering: (a) only the direct costs, (b) both the direct and extra-market costs?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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