Suppose a farmer can purchase liquid fertilizer at $5 per pound. The farmer can apply the...

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Suppose a farmer can purchase liquid fertilizer at $5 per pound. The farmer can apply the fertilizer on either or both of two crops, cauliflower or cabbage. The expected extra benefit of the application of additional pounds of fertilizer is shown below. Pound of fertilizer 1st 2nd 3rd 4th 5th Extra benefit in dollars Cauliflower cabbage 8 5 7 4 6 3 5 2 4 1 How many pounds of fertilizer would the farmer purchase? How much would be applied on each crop? O The farmer would purchase 6 pounds of fertilizer and apply an equal amount to each crop. O The farmer would purchase 5 pounds of fertilizer and apply 4 pounds on the cauliflower and 1 pound on the cabbage. O The farmer would purchase 3 pounds of fertilizer and apply it all on the cauliflower. O The farmer would purchase 6 pounds of fertilizer and apply 5 pounds on the cauliflower and 1 pound on the cabbage. Suppose a farmer can purchase liquid fertilizer at $5 per pound. The farmer can apply the fertilizer on either or both of two crops, cauliflower or cabbage. The expected extra benefit of the application of additional pounds of fertilizer is shown below. Pound of fertilizer 1st 2nd 3rd 4th 5th Extra benefit in dollars Cauliflower cabbage 8 5 7 4 6 3 5 2 4 1 How many pounds of fertilizer would the farmer purchase? How much would be applied on each crop? O The farmer would purchase 6 pounds of fertilizer and apply an equal amount to each crop. O The farmer would purchase 5 pounds of fertilizer and apply 4 pounds on the cauliflower and 1 pound on the cabbage. O The farmer would purchase 3 pounds of fertilizer and apply it all on the cauliflower. O The farmer would purchase 6 pounds of fertilizer and apply 5 pounds on the cauliflower and 1 pound on the cabbage.

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To determine the optimal allocation of fertilizer we need to consider the marginal benefit extra ben... View the full answer