(You may omit all of any question or questions and get 20%
credit) I. There are three qualities of land; each requires one
dose of labor plus capital per acre in order to produce corn.
One dose of labor plus capital costs £12. The table shows the
amount of each kind of land and the amount of corn it can
produce per acre. You cannot produce more corn per acre by
applying more than one dose of labor plus capital. (10 points)
Acres Output/acre Rent and Price for part A Rent and Price for
part B Grade 1 100 4 bushels 4£/acre Grade 2 100 3 bushels
0£/acre Grade 3 200 2 bushel 0£/acre Price of corn £4/bushel
Total Rent £400/year Rent and Price for part A Rent and Price
for part B Price of corn A. A total of 600 bushels of wheat is
being produced. Show the price of wheat, rent per acre of each
grade of land, and total rent collected on all land. To produce
600 bushels requires all of the grade 1 and some of the grade 2,
so grade 2 is the marginal land and pays no rent. It costs £12
to produce 3 bushels of corn on gr