Question

A farmer estimates that if he digs his potato crop now he will have 120 bushels...

A farmer estimates that if he digs his potato crop now he will have 120 bushels which he will be able
to sell for $1 per bushel. If he waits, the crop will grow by 20 bushels per week while the price will
drop by $0.10 per bushel per week. When should he dig his crop to maximize his return?

Homework Answers

Answer #1

Please UPVOTE if this answer helps you understand better.

Solution:-

Please UPVOTE if this answer helps you understand better.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A grower estimates that if he picks his apple crop now, he will obtain 1000 boxes...
A grower estimates that if he picks his apple crop now, he will obtain 1000 boxes of apples, which he can sell at $40 per box.  However, he thinks that his crop will increase by 120 boxes of apples for each week he delays picking, but that the price will drop at a rate of $1.85 per box per week; in addition, he estimates that approximately 20 boxes per week will spoil for each week he delays picking. When should he...
A strawberry farmer will receive $28 per bushel of strawberries during the first week of harvesting....
A strawberry farmer will receive $28 per bushel of strawberries during the first week of harvesting. Each week after that, the value will drop $0.70 per bushel. The farmer estimates that there are approximately 128 bushels of strawberries in the fields, and that the crop is increasing at a rate of four bushels per week. When should the farmer harvest the strawberries (in weeks) to maximize their value? (Assume that "during the first week of harvesting" here means week 1.)...
A strawberry farmer will receive $37 per bushel of strawberries during the first week of harvesting....
A strawberry farmer will receive $37 per bushel of strawberries during the first week of harvesting. Each week after that, the value will drop $0.80 per bushel. The farmer estimates that there are approximately 129 bushels of strawberries in the fields, and that the crop is increasing at a rate of four bushels per week. When should the farmer harvest the strawberries (in weeks) to maximize their value? (Assume that "during the first week of harvesting" here means week 1.)...
A strawberry farmer will receive $38 per bushel of strawberries during the first week of harvesting....
A strawberry farmer will receive $38 per bushel of strawberries during the first week of harvesting. Each week after that, the value will drop $0.80 per bushel. The farmer estimates that there are approximately 118 bushels of strawberries in the fields, and that the crop is increasing at a rate of four bushels per week. When should the farmer harvest the strawberries (in weeks) to maximize their value? (Assume that "during the first week of harvesting" here means week 1.)...
Six months from now, Farmer Mike will harvest 25,000 bushels of com. In doing so, he...
Six months from now, Farmer Mike will harvest 25,000 bushels of com. In doing so, he incurs costs of $136,000. The current spot price of com is $5.90 per bushel, and the effective six-month interest rate is 6 percent. Mike has decided to hedge with a collar by purchasing $5.70-strike puts and selling $6.10-strike calls on 25,000 bushels of com. The puts have a premium of $0.47 per bushel, while the calls have a premium of $0.8 per bushel. What...
Six months from now, Farmer Larry will harvest 25,000 bushels of corn. In doing so, he...
Six months from now, Farmer Larry will harvest 25,000 bushels of corn. In doing so, he incurs costs of $111,000. The current spot price of corn is $4.90 per bushel, and the six-month forward price is $5.05. Suppose Larry decides to sell corn forward. What total profit would he earn if the market price of corn at harvest time is $4.30, $4.70, $5.10, and $5.50, respectively? show all steps
Farmer Hoglund has discovered that on his farm, he can get 30 bushels of corn per...
Farmer Hoglund has discovered that on his farm, he can get 30 bushels of corn per acre if he applies no fertilizer. When he applies N pounds of fertilizer to an acre of land, the marginal product of fertilizer is 1 - N/200 bushels of corn per pound of fertilizer. 1. Write down a function that states Farmer Hoglund’s yield per acre as a function of the amount of fertilizer he uses. (Note: you will need a bit of calculus...
Problem 4. Farmer Hoglund has discovered that on his farm, he can get 30 bushels of...
Problem 4. Farmer Hoglund has discovered that on his farm, he can get 30 bushels of corn per acre if he applies no fertilizer. When he applies N pounds of fertilizer to an acre of land, the marginal product of fertilizer is 1 - N/200 bushels of corn per pound of fertilizer. 1. Write down a function that states Farmer Hoglund’s yield per acre as a function of the amount of fertilizer he uses. (Note: you will need a bit...
A farmer produces 10,000 bushels of corn per season, which he sells in September. A good...
A farmer produces 10,000 bushels of corn per season, which he sells in September. A good friend of his suggested he sells the whole production in the future's market. The settlement price of the corn futures contract for september is 403.4 (or 403'4 in CME parlance). The projection indicates the spot price of corn in September will either be 3.5 or 4.5 Dollars per bushel with equal pribability. The farmer is very weary of selling it all in the futures...
retired potter can produce pitchers at a cost of $5 each. He estimates his price function...
retired potter can produce pitchers at a cost of $5 each. He estimates his price function to be p = 19 − 0.5x, where p is the price at which exactly x pitchers will be sold per week. Find the number of pitchers that he should produce and the price that he should charge in order to maximize profit. Also find the maximum profit. quantity     pitchers price $ profit $
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT