Van Farms Inc. is a small grower of watermelons. Van Farms estimates that watermelon output would increase by 1,200 per month with an additional 1,000 gallons of water per month provided by an irrigation system. Alternatively, watermelon output could be increased by 500 per month with an additional 2 tons of fertilizer per month. Assuming the cost of water is $.03 per gallon and that fertilizer is $25 per ton, is Van Farms using an optimal combination of fertilizer and water? Why or why not?

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The Answer of Van Farms Inc. is a small grower of watermelons. Van Farms estimates that watermelon output would increase by 1,200 per month with an additional 1,000 gallons of water per month provided by an irrigation system. Alternatively, watermelon output could be increased by 500 per month with an additional 2 tons of fertilizer per month. Assuming the cost of water is $.03 per gallon and that fertilizer is $25 per ton, is Van Farms using an optimal combination of fertilizer and water? Why or why not?