Question

Brett has almond​ orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this​ year's crop with him. Assume he produces 1 comma 050 tons of almonds and his neighbor produces 774 tons of walnuts. If the market price of almonds is $ 103 per ton and the market price of walnuts is $ 114 per​ ton:
a. Should he make the​ exchange?
b. Does it matter whether he prefers almonds or​ walnuts? Why or why​ not?

Answer 1

Answer:

Explanation:

a. Should he make the​ exchange?

Brett Produces almonds = 1050 tons

Owner of walnut produces = 774 tons

Market Price almond = $103 per ton

Market Price of walnuts = $114 per ton

Therefore

The market value of the almond crop = (1050 tons) x ($103)

                                                               = $108,150

The market value of the walnut crop = (774 tons) x ($ 114)

                                                             = ​$88,236

​He should not make the exchange since the price of almond is high than walnuts

b. Does it matter whether he prefers almonds or​ walnuts?

Why or why​ not?

No. His preference is irrelevant to the value of the crops.

Is the above statement true or​ false? True