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David has three different kinds of crops, A, B, and C, that he could plant on his farm. The total budget he has is $1,000.
David has three different kinds of crops, A, B, and C, that he could plant on his farm. The total budget he has is $1,000. The cost and expected annual revenue per acre for each crop is: Crop Fixed Cost ($) A B 140 100 25 Annual Revenue ($) 20.00 10.00 3.50 There are labor costs that apply to these three crops: Labor cost for A = $0 if no acres of A are cropped, or $100 if one or more acres of A are cropped Labor cost for B = $0 if no acres of B are cropped, or $80 if one or more acres of B are cropped Labor cost for C = $0 if no acres of C are cropped, or $25 if one or more acres of C are cropped If David has enough land available to plant crops, what is his optimal cropping pat tern to maximize the annual profit (expected annual revenue minus labor cost) of the farm
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