Problem 18-01 (algo) Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre. Instructions: Enter your answers as a whole number. a. If the price at which wheat can be sold is $7 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most that any farmer would pay to rent your 20 acres? b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $8 per bushel?
Problem 18-01 (algo) Suppose that you own a 20-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre. Instructions: Enter your answers as a whole number. a. If the price at which wheat can be sold is $7 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most that any farmer would pay to rent your 20 acres? b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $8 per bushel?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Problem 18-01 (algo)
Suppose that you own a 20-acre plot of land that you would like to rent out to wheat
farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for
fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will
yield 40 bushels of wheat per acre.
Instructions: Enter your answers as a whole number.
a. If the price at which wheat can be sold is $7 per bushel and if farmers want to earn a
normal profit of $10 per acre, what is the most that any farmer would pay to rent your 20
acres?
$
b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $8 per
bushel?
LA](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16991e97-8872-4313-bde7-cb2e7c638516%2F94656fef-caa2-4929-926b-99ccd1e6400f%2Fj3tokh8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 18-01 (algo)
Suppose that you own a 20-acre plot of land that you would like to rent out to wheat
farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for
fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will
yield 40 bushels of wheat per acre.
Instructions: Enter your answers as a whole number.
a. If the price at which wheat can be sold is $7 per bushel and if farmers want to earn a
normal profit of $10 per acre, what is the most that any farmer would pay to rent your 20
acres?
$
b. What price would the farmer pay to rent your 20 acres if the price of wheat rises to $8 per
bushel?
LA
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