Answer:
The answer is explained below.
Explanation:
a) The first hectare can produce 1,000 bushels of wheat, the second 900, the third 800, the fourth produce 700 and the fifth would produce 600 bushels.
b) The revenue = price per bushel × number of bushel.
First hectare = 1000 × $20 = $20000
Second hectare = 900 × $20 = $18000
Third hectare = 800 × $20 = $16000
Fourth hectare = 700 × $20 = $14000
Fifth hectare = 600 × $20 = $12000
3) The cumulative revenue at the nth farm = revenue at nth farm + revenue at (n-1) farm
Also The marginal revenue at the nth farm = cumulative revenue at nth farm - cumulative revenue at (n-1) farm
Acres Q P
rice TR each acre Cumm. TR Marginal. TR
1 1000 $20 $20000 $20000 $20000
2 900 $20 $18000 $38000 $18000
3 800 $20 $16000 $54000 $16000
4 700 $20 $14000 $68000 $14000
5 600 $20 $12000 $80000 $12000
