Question
Given 1: Assume that there are parcels of land with three levels of fertility.There are 300 acres of quality 1 land that produces 200 bushels
Given 1:
Assume that there are parcels of land with three levels of fertility.There are 300 acres of quality 1 land that produces 200 bushels of corn per acre with one dose of labor-capital.There are 200 acres of quality 2 land that produces 150 bushels of corn per acres with one dose of labor capital.There are 100 acres of land of quality 3, which produces 100 bushels of corn per acre with one dose of labor capital.Assume that only one dose of labor-capital can be applied to each acre of land.One dose of labor-capital includes 1 worker working for a year.The subsistence level of consumption for a worker is 75 bushels of corn per year.
Given 2:
Now assume that population is such that 75,000 bushels of corn are required.
Question:
In the simplest case, what will be the distribution of value of the bushels of corn (i.e., how many bushel equivalents do the landlords, capitalists, and workers receive)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started