Suppose a farmer has a fixed resource of 80 acres planted in corn. If the farmer does not cultivate the cornfield (clear the weeds) at all, the yield will be 40 bushels per acre. If he cultivates the land once, output may rise to 50 bushels per acre. A second cultivation may increase output to 57 bushels per acre, a third to 61, and a fourth to 63. a. What will succeeding cultivations will do? b. Why not just keep adding fertilizers and harvesters? c. Give another agriculture related example that will fit this concept.

Suppose a farmer has a fixed resource of 80 acres planted in corn. If the farmer does not cultivate the cornfield (clear the weeds) at all, the yield will be 40 bushels per acre. If he cultivates the land once, output may rise to 50 bushels per acre. A second cultivation may increase output to 57 bushels per acre, a third to 61, and a fourth to 63. a. What will succeeding cultivations will do? b. Why not just keep adding fertilizers and harvesters? c. Give another agriculture related example that will fit this concept.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7A: Production Economics Of Renewable And Exhaustible Natural Resources, Advanced Material

Section: Chapter Questions

Problem 3E

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