Answer to Question #101952 in Macroeconomics for Nina Kerby

Question

Refer to the figure below. It is efficient for this farmer to:

MC1 Q7

Question 29 options:

grow 750 bushels of wheat and 125 bushels of corn.


grow 250 bushels of wheat and 500 bushels of corn.


grow 1000 bushels of wheat and 250 bushels of corn.


grow 1000 bushels of wheat and 500 bushels of corn.

Answer 1

Answer on #Q101952

Question.

Refer to the figure below. It is efficient for this farmer to:

MC1 Q7

Question 29 options:

grow 750 bushels of wheat and 125 bushels of corn.

grow 250 bushels of wheat and 500 bushels of corn.

grow 1000 bushels of wheat and 250 bushels of corn.

grow 1000 bushels of wheat and 500 bushels of corn.

Solution.

In this situation, we must learn what options is so efficient for this farmer. And so in this case, variant where farmer will grow 750 bushels of wheat and 125 bushels of corn, it is so optimal, when MC=1, that`s why P for bushels of wheat and for 125 bushels of corn is 1 also, and provided when Q=7, first variant is so efficient and optimal for farmer.