1. Suppose that you own a 10-hectare plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per hectare for seed, $80 per hectare for fertilizer, and $70 per hectare for equipment rentals and labour. With these inputs, the land will yield 40 bushels of wheat per hectare. If the price at which wheat can be sold is

$5 per bushel, and if farmers want to earn a normal profit of

$10 per hectare, what is the most that any farmer would pay to rent your 10 hectares? What if the price of wheat rose to

$6 per bushel? [LO18.1]