Consider big jake’s problem: big jake operates a 1200-acre ranch in arizona. his principle activities are raising beef, wheat and alfalfa. the arizona water authority has just given its water allotments for next year (big jake was allotted 2000 acre-feet) and big jake is busy preparing his production plan for next year. he figures that beef prices will hold at around $600 per ton and he will make a profit of $60 per ton. wheat will sell at $1.60 per bushel and his profit will be $.60 per bushel. best guesses are that he will be able to sell alfalfa at $34 per ton and make a profit of $10 per ton

some technological features of big jake’s operation are wheat yield, 50 bushels per acre; alfalfa yield, 3 tons per acre. other features are given below. the variables are defined as follows:

activity costs water reqmts land reqmts

(acre-feet) (acres)

1 ac wheat $8 1.5 1.0

1 ac alfalfa 30 2.5 1.0

1 ton beef 40 0.1 0.05

a. what would be big jakes optimal planning strategy to obtain the maximum profit?

b. what happens to the optimal planting policy if the profit of wheat doubles?

Acrosswalk_when there are no pavement markings.

< back to assignment attempts: 1 1 keep the highest: 1 / 2 2. determining opportunity cost juanita is deciding whether to buy a suit that she wants, as well as where to buy it. three stores carry the same suit, but it is more convenient for juanita to get to some stores than others. for example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the suit: store travel time each way price of a suit (minutes) (dollars per suit) local department store 15 102 across town 30 88 neighboring city 60 65 juanita makes $42 an hour at work. she has to take time off work to purchase her suit, so each hour away from work costs her $42 in lost income. assume that returning to work takes juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. as you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. complete the following table by computing the opportunity cost of juanita's time and the total cost of shopping at each location. store opportunity cost of time price of a suit total cost (dollars) (dollars per suit) (dollars) local department store 102 across town 88 neighboring city 65 assume that juanita takes opportunity costs and the price of the suit into consideration when she shops. juanita will minimize the cost of the suit if she buys it from the . grade it now save & continue continue without saving

Which feature is a characteristic of a corporation?