2. Mang Oleh Kembang in Lembang has 10 major fields that are used to grow Mango. The productivity of each field is expressed as follows: Annual Yield, Hundreds of Kilograms Field 1 2000 Field 2 1800 Field 3 1750 Field 4 1625 Field 5 1500 Field 6 1450 Field 7 1375 Field 8 1225 Field 9 8500 Field 7250 10 Assume that each field is the same size and that the variable costs of farming are $74,600 per year per field. The variable costs cover labour and machinery time, which is rented. Tamima farm must decide each year how many fields to plant. a. In 2017, corn farmers received $5.15 per 100 KG. How many fields did Tamima plant? Explain. b. By 2020, the price of corn had fallen to $4.23 per 100 KG. How will this price decrease change Tamima's decision? How will it affect his demand for labour?

2. Mang Oleh Kembang in Lembang has 10 major fields that are used to grow Mango. The productivity of each field is expressed as follows: Annual Yield, Hundreds of Kilograms Field 1 2000 Field 2 1800 Field 3 1750 Field 4 1625 Field 5 1500 Field 6 1450 Field 7 1375 Field 8 1225 Field 9 8500 Field 7250 10 Assume that each field is the same size and that the variable costs of farming are $74,600 per year per field. The variable costs cover labour and machinery time, which is rented. Tamima farm must decide each year how many fields to plant. a. In 2017, corn farmers received $5.15 per 100 KG. How many fields did Tamima plant? Explain. b. By 2020, the price of corn had fallen to $4.23 per 100 KG. How will this price decrease change Tamima's decision? How will it affect his demand for labour?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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