Question
The following information is provided for the production of corn on two different soil types using nitrogen fertilizer. Fertilizer (lbs) Corn produced, soil type 1
The following information is provided for the production of corn on two different soil types using nitrogen fertilizer.
Fertilizer (lbs) | Corn produced, soil type 1 (bu/acre) | Corn produced, soil type 2 (bu/acre) |
0 | 45 | 58.5 |
10 | 55.2 | 68 |
20 | 62.8 | 76.5 |
30 | 70 | 84.5 |
40 | 76.6 | 91.7 |
50 | 82.1 | 98 |
60 | 86.4 | 103.8 |
70 | 90 | 108.8 |
80 | 92.7 | 112.8 |
90 | 94.7 | 116.1 |
100 | 96.4 | 119.2 |
The net revenue for corn produced on soil type 1 is $0.50/bu, while the net revenue for corn produced on soil type 2 is $0.60/bu.
- Suppose that you only have 100 lbs of nitrogen fertilizer available. What is the optimal combination of the two crops?
b) Find the optimal production of corn on the two soil types using the equimarginal principle. (Again, assume that you only have 100 lbs of nitrogen fertilizer available.)
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