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(3 points) Rachels Radishes, LLC can invest capital in $100 increments and has three alternatives for the capital investment. The values in the table are

(3 points) Rachels Radishes, LLC can invest capital in $100 increments and has three alternatives for the capital investment. The values in the table are the marginal revenues that result from each successive $100 of capital invested. Assume Rachel has only $800 in capital. Use the equi-marginal principle of allocation to determine how this capital should be allocated among these alternatives.

Capital Invested Fertilizer ($) Seed ($) Chemicals ($)

1st $100 600 550 360

2nd $100 500 450 350

3rd $100 400 350 340

4th $100 300 250 330

5th $100 200 150 320

Fertilizer Seed Chemicals

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