Imagine that you are a farmer growing wheat. Which of the...

Imagine that you are a farmer growing wheat. Which of the following would be your variable costs? The seed, fertilizer, chemicals, and fuels that you need to grow your wheat. Your rent for the land, and your loan payment for your tractor.

Transcript

00:01 So as we look up this question, it says a farmer has a 1200 acres of land in which he grows corn, wheat, and soybeans.

00:14 So we know the area of land available for those three crops is 1200.

00:25 Sorry about that.

00:28 We know corn costs $45 per acre, wheat is $60, and soybeans cost $50.

00:39 It looks like we have $63 ,600 allocated for the cost of growth.

00:49 We're trying to figure out how many acres of plants needed to be grown.

00:55 Because of market demand, it says the farmer will grow twice as many acres of wheat as corn.

01:04 So keep in mind as we look at corn and wheat, we know that there's twice as many acres of wheat as corn.

01:13 So this is the bigger number.

01:15 So if i multiply the smaller number by two and subtract them, i should wind up with zero.

01:22 At this stage, we have a system of equations.

01:26 We can go ahead and solve whichever way we'd like.

01:29 I would probably use linear combination because notice there's no s in this situation.

01:38 So i'm going to take this top equation, and i'm going to multiply it by negative 50.

01:43 To get rid of the s, we can combine that with our second equation, and then solve from there.

01:53 So we'd have negative 50c plus 45c is going to be negative 5c.

01:59 Negative 50 plus 60 is going to be plus 10w.

02:08 Negative 50 plus 50 is zero.

02:14 And then 1 ,200 times negative 50 is negative 60 ,000...

Question

Imagine that you are a farmer growing wheat. Which of the following would be your variable costs? The seed, fertilizer, chemicals, and fuels that you need to grow your wheat. Your rent for the land, and your loan payment for your tractor.

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