Answer:
To maximize profits, the farmer should plant 120 acres of wheat, and no acre of corn.
Step-by-step explanation:
Given that a farmer plans to grow wheat and corn, and each acre of wheat requires 4 hours of labor and $ 20 of capital, and each acre of corn requires 16 hours of labor and $ 40 of capital, and the farmer has at most 800 hours of labor and $ 2400 of capital available, if the profit from an acre of wheat is $ 80 and from an acre of corn is $ 100, to determine how many acres of each crop should she plant to maximize her profit the following calculation must be performed:
Knowing that each acre of wheat has a 50% lower capital cost, 75% lower hours and a 20% lower profit, in principle this would be the crop to be planted to obtain better yields.
2400/20 = 120
120 x 4 = 480
120 x 80 = 9,600
Thus, to maximize profits, the farmer should plant 120 acres of wheat, and no acre of corn.
