Output Substitution Ratio- Output Profit Ratio at best (profit) max level of enterprises. The Output Substitution Ratio Calculation: Divide the quantity of output of the first enterprise given gained. up by the quantity of output of the other enterprise Output Substitution Ratio-utput 1 given up!AOutput 2 gained Output Profit Ratio Calculation: Divide the profit of the enterprise being increased by the profit of the enterprise being reduced Output profit ratio Profit Enterprise Increased IProfit Enterprise Decreased Acres Input Profit Ratio Change in Change in Output of Acres of Output output substitution Alfalfa Sorghum Givenupt-Added -- Ratio 100 200 300 1.000 975 925 845 25 100 100 100 100 600 470 150 100 100 100 400 745 100 500 620 125 700 270 200 0 270 800 Sorghum-$35 per acre and Alfalfa $40 per acre 7. Calculate the Output Substitution Ratios and the Input Profit Ratios and fill in the blanks in the table above. Note the input profit ratio will be the same for each blank. 8. What is the nearest profit maximizing level of alfalfa and sorghum acreage? Alfalfa Acres: Sorghum Acres: Output Substitution Ratio- Output Profit Ratio at best (profit) max level of enterprises. The Output Substitution Ratio Calculation: Divide the quantity of output of the first enterprise given gained. up by the quantity of output of the other enterprise Output Substitution Ratio-utput 1 given up!AOutput 2 gained Output Profit Ratio Calculation: Divide the profit of the enterprise being increased by the profit of the enterprise being reduced Output profit ratio Profit Enterprise Increased IProfit Enterprise Decreased Acres Input Profit Ratio Change in Change in Output of Acres of Output output substitution Alfalfa Sorghum Givenupt-Added -- Ratio 100 200 300 1.000 975 925 845 25 100 100 100 100 600 470 150 100 100 100 400 745 100 500 620 125 700 270 200 0 270 800 Sorghum-$35 per acre and Alfalfa $40 per acre 7. Calculate the Output Substitution Ratios and the Input Profit Ratios and fill in the blanks in the table above. Note the input profit ratio will be the same for each blank. 8. What is the nearest profit maximizing level of alfalfa and sorghum acreage? Alfalfa Acres: Sorghum Acres