Question

What is the profit maximizing output mix (approximately) and why?

Corn(bu/ac)	Soybean (bu/ac)	Marginal Rate of Product Transformation(MRPT)	Revenue	Output Price Ratio
600	0	-	$1,800	-3.17
480	63	-1.90	2,038.5	-3.17
330	126	-2.38	2,187	-3.17
165	165	-4.23	2,062.5	-3.17
0	200	-4.71	1,900	-3.17

Answer 1

It shall be noted that for the profit maximization output mix, Marginal rate of product transformation (MRPT ) = Output Price ratio

If the exact equality between MRPT and Output price ratio does not hold, that output mix would be chosen as the profit-maximizing, beyond which MRPT < Output Price ratio

That output mix is 330 Corn (bu/ac) and 126 Soybean (bu/ac)

At this output mix MRPT = -.238, which is greater than Output price ratio of -3.17

Beyond this output mix MRPT = -4.23 which is less than the Output price ratio of -3.17

Thus,

The correct answer is - output mix is 330 Corn (bu/ac) and 126 Soybean (bu/ac)