Computing profits and output

Reference no: EM1315421

A farm operator has asked you to help him/her determine the quantity of water that should be applied to a crop under irrigation. The crop is being irrigated via a sprinkler system that can be regulated in terms of the number of times per day that water is applied. The total physical product (TPP) for the crop is shown below for different application rates per day. Note that the same amount of water is delivered at each application and that the crop currently sells for $2.10/bu.

Number of Applications per Day	Total Physical Product (bu/acre)
0	142
1	152
2	160
3	165
4	166

Given this information, please answer the following:

If each application of water costs $19/acre, determine the number of applications of water per day that will yield maximum profits.

Reference no: EM1315421

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