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Consider an organic chili pepper farm in New Mexico. They can grow a combination of jalapenos, habaneros, and poblanos. For inputs, they use land, labor, and organic fertilizer of which they have endowments of 350 acres, 500 hours, and 300 bags, respectively. They have a total working budget of $45,000. Based on the following production information, use Solver to calculate the farm's output supply and input demand functions for all factors and products.
Labor (hours/acre)
Cost ($/acre)
Fertilizer (bags/acre)
Yields/Prices ($)
Plowing
0.75
4
Plant Jalapenos
0.40
110
0.70
Plant Habaneros
0.45
75
Plant Poblanos
0.35
95
Harvest Jalapenos
0.30
20
100 bushels/acre
Harvest Habaneros
95 bushels/acre
Harvest Poblanos
30
85 bushels/acre
Jalapeno Price
4.00/bushel
Habanero Price
3.75/bushel
Poblano Price
4.75/bushel
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