Assume that crop rent gradients for three different crops are a function of crop type and soil fertility. The rent gradient for broccoli is -.02r+3. The rent gradient for spinach is -.005r+2 and the rent gradient for wheat is -.00167r+1. Given a farm with 600 acres, how many acres would be planted with each crop? How would this change if the government decides to subsidize spinach production by $0.50—shifting the curve out by $0.50?

Assume that crop rent gradients for three different crops are a function of crop type and soil fertility. The rent gradient for broccoli is -.02r+3. The rent gradient for spinach is -.005r+2 and the rent gradient for wheat is -.00167r+1. Given a farm with 600 acres, how many acres would be planted with each crop? How would this change if the government decides to subsidize spinach production by $0.50—shifting the curve out by $0.50?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 11E

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