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Hill Country Farms Inc

Question 35

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Hill Country Farms Inc. is a small grower of peaches. Hill Country estimates that peach output would increase by 600 bushels per season with an additional 6,000 gallons of water provided strategically throughout the season by an existing irrigation system. Alternatively, peach output could be increased by 500 bushels per season with an additional 2 tons of fertilizer applied at the beginning of the season. Assuming the cost of water is $.01 per gallon and that fertilizer is $25 per ton, is Hill Country Farms using an optimal combination of fertilizer and water? Why or why not?

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For a least cost combination of inputs,
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