Question No. 5:
Part – A:
Marks [3]
A corporate agricultural organization has three separate farms which are to be used during the coming year. Each farm has unique characteristics which make it most suitable for raising one crop only. The table below indicates the crop selected for each farm, the annual cost of planting 1 acre of the crop, the expected revenue to be derived from each acre, and the fixed costs associated with operating each farm. In addition to the fixed costs associated with operating each farm, there are annual fixed costs of $75,000 for the corporation as a whole.
Farm Crop Cost/Acre (c_j) Revenue/Acre (r_j) Fixed Cost (F_j)
1 Soya beans $900 $1,300 $150,000
2 Corn $1,100 $1,650 $175,000
3 Potatoes $750 $1,200 $125,000
Table 2
Determine the profit function for the three-farm operation.
What are the expected profits for the program if the board of directors has voted on the following planting program for the coming year: 1,000 acres will be planted at farm 1, 1,600 at farm 2, and 1,550 at farm 3?
The summer drought has resulted in the revenue yields per acre being reduced by 20%, 30%, and 10% respectively, at the three farms. What is the profit expected from the mentioned planting program?
Part – B:
Marks [1]
Given, f(a,b,c,d) = 3a^2b + bc - 2ad^2. Evaluate f(-2,2,-4,-3) and f(2,3,4,5).
Part – C:
Marks [1]
The function q = 230,000 - 28p is a demand function which expresses the quantity demanded of a product q as a function of the price charged for the product p, stated in dollars. Determine the restricted domain and range of the function.