Felix is a wheat farmer who has two fields he can grow wheat. The first field is right next to his house and the top soil is rich and thick, the second field is 10 miles away in the mountains with rocky soil. At current price felix produces enough to cover his costs his cost of production from the field next to him. To determine the state of market price of the wheat for felix to have the incentive to produce from the second field

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Chapter 4, Problem 12P

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Felix is a wheat farmer who has two fields he can grow wheat. The first field is right next to his house and the top soil is rich and thick, the second field is 10 miles away in the mountains with rocky soil. At current price felix produces enough to cover his costs his cost of production from the field next to him. To determine the state of market price of the wheat for felix to have the incentive to produce from the second field

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