Formulate this as an lp

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A farmer has the following resource endowments: 1,000 acres of land, 1,500 hours of family labor, and $30,000 of capital investment. She can use these resources to grow the following crops: corn, sorghum, wheat, and soybeans. The farmer expects the fol- lowing in terms of crop yields, prices, variable costs, and labor requirements.

 

 

Crop

 

Price ($/bushel)

Yield (bushel/acre)

 

Variable Cost ($/acre)

Labor Requirement (hours/acre)

Corn

2.75

120

250

3.25

Sorghum

2.65

100

200

3.00

Wheat

3.15

105

245

3.15

Soybeans

6.75

45

230

3.30

Also, the farmer can invest any part of her $30,000 to rent additional land at $100 per acre and hire additional labor at $6 per hour.
Assume that the farmer works to maximize net revenue (gross revenue minus vari- able costs) from the production of these four crops. Formulate this as an LP.

Reference no: EM13879684

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