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Two chicken farmers are producing chickens using the same technology that employs chicken feed and hired labor to produce chickens. The farmers live in different
Two chicken farmers are producing chickens using the same technology that employs chicken feed and hired labor to produce chickens. The farmers live in different states (Arkansas and Maryland) and therefore face different input and output prices, but it turns out for contractual reasons that they both want to produce the same number of chickens. The price of chicken feed in Arkansas is $2.00 a pound while the price of hired labor is $5.00 an hour. In Maryland, the high-cost state, the price of chicken feed is $4.00 a pound while the price of hired labor is $10.00 per hour. Decide which region has higher cost, which region employs the most labor, and which region employs the most chicken feed. Explain all of your answers
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