QUESTION THREE

A Kenyan farmer, specializing in maize production, faces the challenge of optimizing their production function to maximize output while managing the interplay of labor, capital, and human capital inputs. With a fixed land size of 10 acres, the farmer currently employs 5 workers, utilizes a tractor and other farming tools, and has received training on modern farming techniques. The production function, Q = f(L, K, H), can be simplified to Q = f(5, 1, 1) to illustrate the current input combination. To remain competitive and sustainable, the farmer must strategically allocate resources, evaluate and adopt new technologies, and balance economic growth with environmental preservation. The case presents an opportunity for students to apply their knowledge of business strategy, technology, and sustainability to develop practical solutions for Kenyan farmers.

REQUIRED;

Describe how the Kenyan farmer optimizes the allocation of labor, capital, and human capital inputs to maximize the production of maize, while also considering the potential trade-offs between these resources and their impact on overall efficiency and profitability.