Computing the shadow price of an acre of land

Assignment Help Basic Computer Science

Reference no: EM131785003

Question: Shadow prices-land management for Problem refer to the farm co-op application in Example. Rework that linear programming problem with the indicated changes in one constraint and answer the questions.

Example: A farm co-op has 6000 acres available to plant with corn and soybeans. Each acre of corn requires 9 gallons of fertilizer/herbicide and 3/4 hour of labor to harvest. Each acre of soybeans requires 3 gallons of fertilizer/herbicide and 1 hour of labor to harvest. The co-op has available at most 40,500 gallons of fertilizer/herbicide and at most 5250 hours of labor for harvesting. If the profits per acre are $60 for corn and $40 for soybeans, how many acres of each crop should the co-op plant to maximize their profit? What is the maximum profit?

(a) If one more acre of land became available (for a total of 6001 acres), how would this change the co-op's planting strategy and its maximum profit?

(b) Repeat part (a) if 8 more acres of land were available.

(c) Based on parts (a) and (b), what is the profit value of each additional acre of land? This value is called the shadow price of an acre of land.

Reference no: EM131785003

Questions Cloud

Fiduciary duty by misappropriating confidential information : Thereby violate his fiduciary duty by misappropriating confidential information by trading on that information for his own personal benefit?

Find the maximum number of the species : Nutrition in a zoo, there is a natural habitat containing several feeding areas. One of these areas serves as a feeding area for two species, I and II.

Features of financial products and providers : Compare the main features of financial products and providers and Analyse the effects on consumers of changes and trends in the financial market place

Prepare an income statement under the variable costing : Prepare an income statement under the variable costing format for year

Computing the shadow price of an acre of land : Based on parts (a) and (b), what is the profit value of each additional acre of land? This value is called the shadow price of an acre of land.

Calculate the value of the company : The company generates a 10% return on assets each year for the first 2 years. Calculate the value of the company at time 0 using the Residual Income Model

Relationship between project network and project plan : Explain, in your own words, the relationship between a project network and a project plan.

Prepare the journal entry at the data of the bond issuance : Prepare the journal entry at the data of the bond issuance, Prepare the journal entry to record the interest payment and the amortization

Select two of the engagement strategy aspects : Select two of the engagement strategy aspects, and describe when and why it would be appropriate to use these strategies.

User Account

All Pages