Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jeff Wilson, a local grower near Las Cruces, raises three irrigated crops. He is facing an acute water supply shortage. As an economic advisor to

Jeff Wilson, a local grower near Las Cruces, raises three irrigated crops. He is facing an acute water supply shortage. As an economic advisor to Jeff, help him make the optimal water allocation decisions.

Water (Acre-Inch) Cauliflower Production(per acre) Cabbage Prod. (per acre) Broccoli prod.(per acre) MVP Cauliflower($) MVP Cabbage($) MVP Broccoli($)
0 50.40 259.50 44.55
3 57.96 296.10 54.18 50.4 122.0 89.2
6 64.44 327.30 61.47 43.2 104.0 70
9 69.84 356.10 67.14 36.0 96.0 50.0
12 74.16 379.80 72.00 28.8 79.0 45.0
15 77.94 398.55 76.32 25.2 62.5 40.0
18 81.54 407.85 79.56 24.0 31.0 30.0
21 84.78 411.00 81.72 21.6 10.5 20.0
24 87.30 412.80 82.80 16.8 6.0 10.0
27 88.02 413.40 82.80 4.8 `2.0 0.0
30 88.20 411.00 81.45 1.2 -8.0 -12.5

1) If water costs $20.00 per inch, how many inches should be used on each enterprise to maximize total profit?

Cauliflower________ Cabbage_________ Broccoli___________

2) Now assume price is $10.00 but only 36 acre-inches are available? How should this amount of water be divided between the 3 crops?

Cauliflower________ Cabbage__________ Broccoli_________

3) Same situation as above but water is limited to 24 inches. How should this water be allocated?

Cauliflower_________ Cabbage_________ Broccoli_____________

4) If only 18 inches of water is available, how should it be allocated to maximize profit from this limited amount of water?

Cauliflower__________ Cabbage__________ Broccoli_____________

5) How many inches of water should be used in each enterprise to maximize total profit if Jeff has an unlimited supply of water at $10.00 per acre-inch?

Cauliflower__________ Cabbage________ Broccoli______________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

_______________ The government spends more than it receives.

Answered: 1 week ago

Question

4. Describe the role of narratives in constructing history.

Answered: 1 week ago

Question

1. Identify six different types of history.

Answered: 1 week ago