User Account

All Pages

Write the lp tableau for this problem

Assignment Help Microeconomics
Reference no: EM13879456

A farmer can grow three crops on 1,000 acres of land: corn, soybeans, and wheat. In producing these three crops, the farmer has to: (1) plow the land (pl), (2) plant corn (pc), (3) plant soybeans (ps), (4) plant wheat (pw), (5) harvest corn (hc), (6) harvest soybeans (hs), (7) harvest wheat (hw), (8) sell the corn after harvest (sc), (9) sell the soybeans after harvest (ss), and (10) sell the wheat after harvest (sw). The farmer must plow the land prior to planting and must plant the crops prior to harvesting the crops. In addition to the land endowment of 1,000 acres, the farmer has a total of 1,200 hours available to perform all of the above production operations. The farmer does not want to plant more than 400 acres to corn for soil conservation reasons. The farmer's expec- tations regarding the labor requirements (hours per acre) and variable costs for each operation, as well as expected price and yield (bushels per acre) at harvest for the three crops are presented below:

 

 

Operation

Labor Requirement (hours/acre)

Variable Cost ($/acre)

Crop Yields and Prices

Plowing (pl)

0.40

4.00

 

Plant Corn (pc)

0.39

114.00

 

Plant Soybeans (ps)

0.30

80.00

 

Plant Wheat (pw)

0.30

78.00

 

Harvest Corn (hc)

0.60

48.00

120

Harvest Soybeans (hs)

0.30

17.00

40

Harvest Wheat (hw)

0.28

10.00

70

Corn Price ($/bushel)

 

2.90

 

Soybean Price ($/bushel)

 

5.75

 

Wheat Price ($/bushel)

 

3.00

 

Assume that the farmer's objective is to maximize net revenue from corn, soybeans, and wheat production.

a. Write the LP tableau for this problem.

b. There are many assumptions regarding the decision process this farmer follows in this model. List three of these assumptions.

c. Solve this exercise using Solver. Summarize the optimal solution and SPs. List three factors (other than relative crop prices) that influence the optimal crop mix in this exercise.

Reference no: EM13879456

Questions Cloud

Analyze the use of social media in marketing : discuss and analyze the use of social media in marketing your product/service
Prepare notes that itemize the balance sheet control account : Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities and subsequent events.
What is the probability that annual return on company stocks : The annual returns on AAA stocks are normally distributed with an average historical return of 17.3% and a standard deviation of 33.4%. What is the probability that annual return on small-company stocks is between 10% and 30%?
Analyze the dynamics of supply and demand : Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.
Write the lp tableau for this problem : Solve this exercise using Solver. Summarize the optimal solution and SPs. List three factors (other than relative crop prices) that influence the optimal crop mix in this exercise.
Saturated steam at atmospheric pressure : A 2 m x 2 m vertical plate is exposed on one side to saturated steam at atmospheric pressure and on the other side to cooling water that maintains a plate temperature of 50°C.
Expected to pay dividends-what is the current share price : Lohn Corporation is expected to pay the following dividends over the next four years: $17, $13, $12, and $7.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 1..
Determine whether jeremy should lease or buy plant in china : Determine whether Jeremy should lease or buy the plant in China
Odd dividend policy-current share price : Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Yen appreciated relative to the dollar even though

In the mid-to-late 1970's, the yen appreciated relative to the dollar even though Japan's inflation rate was higher than America's.

  Show the average cost-pricing solution

Compare the size of the welfare (deadweight) loss under monopoly in the case of perfect price discrimination and under the standard case of simple monopoly. Explain.

  Drought on the equilibrium price and quantity of beef

The southern United States is in the midst of a severe drought. Texas has suffered estimated crop and livestock losses opf $7.62 billion since 2010 (ehwn the drought began).

  Large country case-how large is the optimal tariff rate

Suppose country A is large enough to affect the world price of motorbike and therefore it faces an upward-sloping supply curve from the rest of world (ROW). The supply curve of the ROW is shown as follows:

  Compute the value of the Lagrange multiplier

You are organizing a rock concert to benefit Amnesty International. The concert is to be held in a football stadium that has a seating capacity of 56,000. There are two kinds of seating: reserved and general.

  How to avoid the error by using a pre-estimation present

the interest formula shows how interest rate and time are related. it gives you a way of finding one of these values if

  Suppose a bars constant marginal cost per beer is 360 and

suppose a bars constant marginal cost per beer is 3.60 and it was making 40 cents per beer in variable profit without

  Describe three type of tangible and intagible resources

1 describe at least thee types of tangible and intagible resources and capabilities 2 which is more difficult: imitating a firm's tangible resources or its intangible resourrces 3 if a firm is successful domestically,is ti likely to be successful int..

  What are the main elements of classical liberal explanations

What are the main elements of classical liberal explanations of growth and development? Compare the internal and external explanations of development and stagnation.

  Economics of markets and organizations

Economics of Markets and Organizations

  Factors of microeconomic and macroeconomic

Describe some of the microeconomic and macroeconomic factors a firm must consider in its own sales and profit forecasting.

  Describe a step-by-step process of conducting

Propose ways that a manager can cope with any negative emotions that may accompany an employee layoff - Describe a step-by-step process of conducting the dismissal meeting.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd