A farmer has 100 acres on which to plant oats or corn. Each acre of oats requires $18 capital and 2 hours of labor. Each acre of corn requires $36 capital and 6 hours of labor. Labor costs are $8 per hour. The farmer has $2100 available for capital and $2400 available for labor. If the revenue is $55 from
A farmer has 100 acres on which to plant oats or corn. Each acre of oats requires $18 capital and 2 hours of labor. Each acre of corn requires $36 capital and 6 hours of labor. Labor costs are $8 per hour. The farmer has $2100 available for capital and $2400 available for labor. If the revenue is $55 from each acre of oats and $125 from each acre of corn, what planting combination will produce the greatest total profit? (Profit here is revenue plus leftover capital and labor funds.) What is the maximum profit?
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Since the farmer can spend $2400 for labor at $8 per hour, the available labor is 2400 8 = 300 hours…View the full answer
Related Book For 
Finite Mathematics and Its Applications
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
ISBN: 978-0134768632