Answer to Question #212835 in Microeconomics for SURYA

Question

 Assume that the farmer wants to produce a fixed amount of fodder at a feasible level y2 0 . He decides to allocate L2 amount of land for the cultivation of this crop. If the land constraint is exactly met, show how would you derive the cost function for food C1(.), and that of fodder C2(.) ?

Answer 1

Solution:

Lex X be the acres of food (C1) planted

Lex Y be the acres of fodder (C2) planted

X + Y ≤ L2

The cost function for fodder (C2) = Y + Y20 ≤ L2

The cost function for food (C1) = Y20 - X ≤ L2