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03-11-2008, 07:04 PM
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| Micro economics question? Somebody help me out. I'm not a bum, just can't seem to figure out how to find optimal point on production possibilities curve. Farmer J has 1,000 acres equally suited for growing beans and corn. Fixed costs are zero. MC(corn) = .00015Q(corn) AND MC(beans) = .0001Q(beans). P(corn) = $3/bushel and P(beans) = $6.00/bushel. What is the profit maximizing number of acres of beans / corn farmer J will plant? Will he leave any acres uncultivated? Thank you in advance!!!      |
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