when Farmer Hoglund applies N pounds of fertilizer per acre, the marginal product of fertilizer is 1 - N/200 bushels of corn.If the price of corn is $3 per bushel and the price of fertilizer is $.30 per pound, then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?
A)180
B)360
C)94
D)368
E)200

Question

Quizplus · Accepted Answer

To maximize profit, set the marginal product of fertilizer equal to the ratio of the price of fertilizer to the price of corn: 1 - N/200 = 0.30/3. Solving for N gives N = 180.

When Farmer Hoglund Applies N Pounds of Fertilizer Per Acre