Part A) Draw/Create the joint PPF (Production Possibilities Frontier). Please label the graph clearly by indicating values for slopes, intercept(s), endpoint(s), and graphical kink(s)). Part B) Farmer Jack is a leading farmer in the market, and his goods attract the attention of outside merchants who approach him. The merchants sell and buy Cotton and Grain at prices Pc = 3 and Pg = 1, respectively. With this said, what is the value-maximizing point of total production? Basically, how many units of Cotton and Grains are produced? Please explain how you got your answer. Part C) Using all of the above information, what is the value of production in dollars? Another way of asking this is basically, what is Jack's income or value of production? Please explain how you got your answer.
Farmer Jack is a well-established farmer who owns two plots of land. He refers to his fields of land by names. One field/plot of land is called Gator Plot, and the other one is called Brown Plot. As a farmer, Jack produces Cotton and Grains. Gator plot has a total of 80 acres of land, and in this field, it takes 10 acres to produce 1 unit of Cotton and 20 acres to produce 1 unit of Grains. On the other hand, Brown Plot has 100 acres of land. In this field, it takes 20 acres to produce 1 unit of Cotton and 10 acres to produce 1 unit of Grains. However, because Jack has been farming for a while now, he is worried about overharvesting COTTON because if he harvests too much Cotton, then the land will become barren. Consequently, there is a quantity restriction on Cotton and only Cotton. The restriction is outlined as follows: FIRST, there is a quantity restriction of 4 Cotton in Gator Plot. This means that Gator Plot is allowed to produce a maximum of 4 units of Cotton. SECOND, there is a quantity restriction of 2 Cotton in Brown Plot. This means that Brown Plot is allowed to produce a maximum of 2 units of Cotton.
With this information, please answer the following parts of this question:
Part A) Draw/Create the joint
Part B) Farmer Jack is a leading farmer in the market, and his goods attract the attention of outside merchants who approach him. The merchants sell and buy Cotton and Grain at prices Pc = 3 and Pg = 1, respectively. With this said, what is the value-maximizing point of total production? Basically, how many units of Cotton and Grains are produced? Please explain how you got your answer.
Part C) Using all of the above information, what is the value of production in dollars? Another way of asking this is basically, what is Jack's income or value of production? Please explain how you got your answer.
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