question archive Suppose that you are an asparagus producer who is producing asparagus with 5 inches of green, 20 stalks per bunch and a stalk-diameter dispersion of 20
Suppose that you are an asparagus producer who is producing asparagus with 5 inches of green, 20 stalks per bunch and a stalk-diameter dispersion of 20
Subject:EconomicsPrice:2.86 Bought6
Suppose that you are an asparagus producer who is producing asparagus with 5 inches of green, 20 stalks per bunch and a stalk-diameter dispersion of 20. For an additional cost of $1 per bushel box, you can produce asparagus with 7 inches of green and a stalkdiameter dispersion of 10, while retaining 20 stalks per bunch. Is it profitable for you to produce the better quality asparagus? Show all your work.
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i) Price = 183.0548
ii)Price = 258.3864.
Since the Price is more for producing the better quality asparagus, they shouldn't produce the better quality asparagus.
Step-by-step explanation
For producing asparagus:
Price = 113.35 + 32.88*Green - 3.7776*Stalks - 0.95716*Disperse
Put Green = 5, Stalks = 20, Disperse = 20
Price = 113.35 + 32.88*5 - 3.7776*20 - 0.95716*20
Price = 183.0548
For an additional $1 per bushel box:
Price = 113.35 + 32.88*Green - 3.7776*Stalks - 0.95716*Disperse
Put Green = 7 Stalks = 20, Disperse = 10
Price = 113.35 + 32.88*7 - 3.7776*20 - 0.95716*10
Price = 258.3864.
