Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Represent the situation as a game and find the optimal strategy for each player. State your final answer in the terms of the original question.

Represent the situation as a game and find the optimal strategy for each player. State your final answer in the terms of the original question.

A farmer grows apples on her 400-acre farm and must cope with occasional infestations of worms. If she refrains from using pesticides, she can get a premium for "organically grown" produce and her profits per acre increase by $300 if there is no infestation, but they decrease by $100 if there is. If she does use pesticides and there is an infestation, her crop is saved and the resulting apple shortage (since other farms are decimated) raises her profits by $200 per acre. Otherwise, her profits remain at their usual levels.

No worms Worms
No pesticides
Pesticides

r1 =
r2 =
c1 =
c2 =
v =

How should she divide her farm into a "pesticide-free" zone and a "pesticide-use" zone? (Round your answers to two decimal places.)

The farmer should set aside acres for pesticide-free apples and use pesticide on the other acres.

What will be her expected increase in profits per acre with this strategy?

This strategy will increase her expected profits by $ per acre.image text in transcribed

26. [-/12 Points] DETAILS BERRFINMATH1 8.2.009. MY NOTES ASK YOUR TEACHER Represent the situation as a game and find the optimal strategy for each player. State your final answer in the terms of the original question. A farmer grows apples on her 400-acre farm and must cope with occasional infestations of worms. If she refrains from using pesticides, she can get a premium for "organically grown" produce and her profits per acre increase by $300 if there is no infestation, but they decrease by $100 if there is. If she does use pesticides and there is an infestation, her crop is saved and the resulting apple shortage (since other farms are decimated raises her profits by $200 per acre. Otherwise, her profits remain at their usual levels. No worms Worms No pesticides Pesticides r1 = r2 = C1 = C2 = V = How should she divide her farm into a "pesticide-free" zone and a "pesticide-use" zone? (Round your answers to two decimal places.) The farmer should set aside acres for pesticide-free apples and use pesticide on the other acres. What will be her expected increase in profits per acre with this strategy? This strategy will increase her expected profits by $ per acre. 26. [-/12 Points] DETAILS BERRFINMATH1 8.2.009. MY NOTES ASK YOUR TEACHER Represent the situation as a game and find the optimal strategy for each player. State your final answer in the terms of the original question. A farmer grows apples on her 400-acre farm and must cope with occasional infestations of worms. If she refrains from using pesticides, she can get a premium for "organically grown" produce and her profits per acre increase by $300 if there is no infestation, but they decrease by $100 if there is. If she does use pesticides and there is an infestation, her crop is saved and the resulting apple shortage (since other farms are decimated raises her profits by $200 per acre. Otherwise, her profits remain at their usual levels. No worms Worms No pesticides Pesticides r1 = r2 = C1 = C2 = V = How should she divide her farm into a "pesticide-free" zone and a "pesticide-use" zone? (Round your answers to two decimal places.) The farmer should set aside acres for pesticide-free apples and use pesticide on the other acres. What will be her expected increase in profits per acre with this strategy? This strategy will increase her expected profits by $ per acre

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_2

Step: 3

blur-text-image_3

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

Finance

Authors: Ehsan Nikbakht, A A Groppelli

6th Edition

0764147595, 9780764147593

More Books

Students also viewed these Finance questions