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The table below shows the marginal benefit for various inputs. Assume that each level represents a $100 investment, and answer the following questions. Level Seed
The table below shows the marginal benefit for various inputs. Assume that each level represents a $100 investment, and answer the following questions. Level Seed Fertilizer Fuel Feed 800 800 400 600 2 650 700 350 300 3 400 650 300 150 150 200 250 75 100 75 200 38 6 50 45 150 19 7 25 0 50 9 8 10 -25 15 5 (a) If you have an unlimited budget, how much would you spend on each input? Explain. (b) Now, assume you can spend a maximimum of $500. What would you spend on each input now? What order would you buy them in? (c) Finally, assume you can borrow as much as you want with an interest rate of 10%. How much will you borrow and how will you spend it if you have to pay back the loan within 1 year
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