1. Finish the table below when the price of the output is $4/bu., then answer the following questions.

Input level	Nitrogen applied (lbs)	Yield (bushels)	Total physical product (TPP) (bushels)	Marginal physical product	Total revenue	Total cost	Marginal revenue (M R)	Marginal cost (M C)
0	0	80	0	--	$320	$575	--	--
1	25	120	40	40	$480	$583
2	50	135	55	15	$540	$590
3	75	142	62	7	$568	$598
4	100	148	68	6	$592	$605
5	125	153	73	5	$612	$613
6	150	156	76	3	$624	$620
7	175	158	78	2	$632	$628
8	200	159	79	1	$636	$635

1. What is the profit maximizing output for the table above? How did you make that decision? (rule and application of the rule) (2 pts.)

2. If the of the crop is $2.50/bu. instead, what is the profit maximizing output? (2 pt.)

3. What is the profit when 100 lbs. of nitrogen is optimal? (2 pts.)

4. What price for your crop would make 125 lbs. of nitrogen the optimal input level? Why? (2 pts.)

2. What are the production rules in the short run and how do they differ from the long run? (3 pts.)

3. What defines the price/value where we shut down in the long run and in the short run? (3 pts.)

4. Answer the following questions based on substitution information from Chapter 8. Show work!
   1. Fill in the table. Round to 3 decimals (3 pts.)

Ration	Silage (lbs.)	Corn (lbs.)	Substitution
1	10,000	5,250	XXX
2	9,000	5,750
3	8,000	6,560
4	7,000	7,500
5	6,000	8,600
6	5,000	9,800

2. Let the price of corn be $0.08 per pound and the price of silage be $0.0625 per pound. What is the least cost ration based on the table above? (2 pts.)

3. Let the price of silage be $0.10 and the price of corn be $0.10 per pound. What is the least cost ration based on the table above? (2 pts.)

4. If the cost of silage is $0.15 per pound, what would the price of corn need to be to make ration number 3 optimum? (2 pts.)