I. MARGINAL PRINCIPLES -- PART II Assume the data in the table are experimental results of using different levels of irrigation water per acre of potatoes. Assume you are a potato grower trying to determine how much water to use. Complete the table and answer the questions on the next page. Assume potatoes sell for $7.50 per cwt. 1. Irrigation Average Marginal Marginal Marginal Input Cost Marginal Cost Water Potatoes (acre-in.) (cwt) Physical Physical Value Product Product Product Marginal Revenue $6.00/in $12.00/in. $6.00in@ $12.00/in. 0 165 XXX XXX XXX XXX XXX XXX XXX XXX 66.33 11.33 85.00 6.00 12.00 7.50 0.53 1.06 3 199 35.67 5.00 37.50 6.00 12.00 7.50 1.20 2.40 6 214 25.11 4.00 30.00 6.00 12.00 7.50 1.50 3.00 9 226 19.42 2.33 17.50 6.00 12.00 7.50 2.57 5.14 12 233 15.87 1.67 12.50 6.00 12.00 7.50 3.60 7.20 15 238 13.44 1.33 10.00 6.00 12.00 7.50 4.50 9.00 18 242 11.67 1.00 7.50 6.00 12.00 7.50 6.00 12.00 21 245 10.29 0.67 5.00 6.00 12.00 7.50 9.00 18.00 24 247 9.19 0.33 2.50 6.00 12.00 7.50 18.00 36.00 27 248 8.17 -1.00 -7.50 6.00 12.00 7.50 30 245 7-1 What is the profit-maximizing amount of water for each of the following price combinations? a) potatoes at $7.50 and water at $6.00 acre-inches. b) potatoes at $7.50 and water at $12.00 acre-inches. c) potatoes at $10.00 and water at $6.00 acre-inches. d) potatoes at $4.00 and water at $12.00 acre-inches. e) potatoes at $12.50 and water at $8.00 acre-inches.
I. MARGINAL PRINCIPLES -- PART II Assume the data in the table are experimental results of using different levels of irrigation water per acre of potatoes. Assume you are a potato grower trying to determine how much water to use. Complete the table and answer the questions on the next page. Assume potatoes sell for $7.50 per cwt. 1. Irrigation Average Marginal Marginal Marginal Input Cost Marginal Cost Water Potatoes (acre-in.) (cwt) Physical Physical Value Product Product Product Marginal Revenue $6.00/in $12.00/in. $6.00in@ $12.00/in. 0 165 XXX XXX XXX XXX XXX XXX XXX XXX 66.33 11.33 85.00 6.00 12.00 7.50 0.53 1.06 3 199 35.67 5.00 37.50 6.00 12.00 7.50 1.20 2.40 6 214 25.11 4.00 30.00 6.00 12.00 7.50 1.50 3.00 9 226 19.42 2.33 17.50 6.00 12.00 7.50 2.57 5.14 12 233 15.87 1.67 12.50 6.00 12.00 7.50 3.60 7.20 15 238 13.44 1.33 10.00 6.00 12.00 7.50 4.50 9.00 18 242 11.67 1.00 7.50 6.00 12.00 7.50 6.00 12.00 21 245 10.29 0.67 5.00 6.00 12.00 7.50 9.00 18.00 24 247 9.19 0.33 2.50 6.00 12.00 7.50 18.00 36.00 27 248 8.17 -1.00 -7.50 6.00 12.00 7.50 30 245 7-1 What is the profit-maximizing amount of water for each of the following price combinations? a) potatoes at $7.50 and water at $6.00 acre-inches. b) potatoes at $7.50 and water at $12.00 acre-inches. c) potatoes at $10.00 and water at $6.00 acre-inches. d) potatoes at $4.00 and water at $12.00 acre-inches. e) potatoes at $12.50 and water at $8.00 acre-inches.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Please help me complete the chart and answer the listed questions regarding irrigation numbers.
I. MARGINAL PRINCIPLES -- PART II
Assume the data in the table are experimental results of using different levels of irrigation
water per acre of potatoes. Assume you are a potato grower trying to determine how much
water to use. Complete the table and answer the questions on the next page. Assume
potatoes sell for $7.50 per cwt.
1.
Irrigation
Water Potatoes
(acre-in.) (cwt.)
Average Marginal Marginal Marginal Input Cost
Physical Physical Value
Product Product Product
Marginal Cost
Marginal
Revenue
@$6.00/in@ $12.00/in.
@$6.00in. @ $12.00/in.
0
165
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
66.33
11.33
85.00
6.00
12.00
7.50
0.53
1.06
3
199
35.67
5.00
37.50
6.00
12.00
7.50
1.20
2.40
6
214
25.11
4.00
30.00
6.00
12.00
7.50
1.50
3.00
9
226
19.42
2.33
17.50
6.00
12.00
7.50
2.57
5.14
12
233
15.87
1.67
12.50
6.00
12.00
7.50
3,60
7.20
15
238
13.44
1.33
10.00
6.00
12.00
7.50
4.50
9.00
18
242
11.67
1.00
7.50
6.00
12.00
7.50
6.00
12.00
21
245
10.29
0.67
5.00
6.00
12.00
7.50
9.00
18.00
24
247
9.19
0.33
2.50
6.00
12.00
7.50
18.00
36.00
27
248
8.17
-1.00
-7.50
6.00
12.00
7.50
30
245
7-1
What is the profit-maximizing amount of water for each of the following price
combinations?
a)
potatoes at $7.50 and water at $6.00
acre-inches.
b)
potatoes at $7.50 and water at $12.00
acre-inches.
c)
potatoes at $10.00 and water at $6.00
acre-inches.
d)
potatoes at $4.00 and water at $12.00
acre-inches.
e)
potatoes at $12.50 and water at $8.00
acre-inches.
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