Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

The Stinson family owns a farm. Three alternatives exist for how to use the farm: a) Grow wheat. Wheat yield would be 70 bu/acre. The price of wheat is $3.50/bu and production expenses are $140/acre b) Grow Barley. Barley yield would be 50 bu/acre. The price of barley is $2.50/bu and production expenses are $150/acre c) Lease out the acres. the Neighbor will bay $80/acre but they will still have expenses of $35/acre.

Sagot :

Answer:

Following are the solution to the given questions:

Explanation:

Please find the complete question in the attached file.

In this question, the Stinsons would prefer the most profitable alternative  

Formula:

[tex]Profit = Income - Costs = (price \times amount) - Costs \ of \ production[/tex]

In point A:

[tex]\to Profit = (70 \times \$3.5) - \$140[/tex]

              [tex]= \$245 - \$140\\\\ = \$105 \ / \ acre[/tex]

In point B:

[tex]\to Profit = (50 \times \$2.5) - \$150[/tex]

              [tex]= \$125 - \$150\\\\ = - \$25 \ / \ acre \ (Loss)[/tex]

In point C:

[tex]\to Profit = \$80 - \$35=\$45 \ / \ acre[/tex]

View image codiepienagoya
Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.