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 $1 per bushel and the price of fertilizer is $.20 per pound, then how many pounds of fertilizer per acre should Farmer Hoglund use in order to maximize his profits?
A)320
B)328
C)160
D)84
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. Here, 1 - N/200 = 0.20/1. Solving for N gives N = 160.

When Farmer Hoglund Applies N Pounds of Fertilizer Per Acre