Problem 1: Winter melons A farmer is using land and fertilizer to produce winter melons. The production function is q = L√VF. The price of one unit of land is 3, the price of unit of fertilizer is 1. The farmer is currently using 4 units of and and 4 units of fertilizer. a) Would it be possible to produce the same number of winter melons at a lower cost? In particular, ould the farmer save some money by replacing a little bit of land with the needed amount of fertilizer to eep production constant? Or by doing the other way round?

Problem 1: Winter melons A farmer is using land and fertilizer to produce winter melons. The production function is q = L√VF. The price of one unit of land is 3, the price of unit of fertilizer is 1. The farmer is currently using 4 units of and and 4 units of fertilizer. a) Would it be possible to produce the same number of winter melons at a lower cost? In particular, ould the farmer save some money by replacing a little bit of land with the needed amount of fertilizer to eep production constant? Or by doing the other way round?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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part D E F
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