Question: A production plan for a farm organized around 100 acres, 3 man-years of labor and $300,000 of capital includes corn, tomatoes and peanuts. The available

A production plan for a farm organized around 100 acres, 3 man-years of labor and $300,000 of capital includes corn, tomatoes and peanuts. The available inputs are entirely allocated to these three crops. The shadow prices (factor costs) of the three inputs are $13, $14, and $0.1, respectively. Wheat is not currently part of the production plan and the owner of the farm wishes to know whether or not it would be profitable to cultivate it. The market price of wheat is $10. The production of one unit of wheat requires 0.1 units of land, 0.04 units of labor, and 4 units of capital. ou must decide for the farmer whether wheat is profitable. Explain your reasoning.

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