Question

Imagine Farmer Blue has 100 acres of land. On his farm, an acre can yield 5 tons of corn or 5 tons of potatoes. Meanwhile, Farmer Red has 150 acres. On her farm, an acre can yield 2 tons of corn or6 tons of potatoes.

Imagine the two farmers make a deal: Farmer Blue will grow only corn and Farmer Red will grow only potatoes. Trading relation between Potatoes and Corn is : Then they’ll trade: two tons of potatoes for one ton of corn.➢i.e. P = 2C

➢How do you think Farmers Blue and Red should decide who grows corn and who grows potatoes?

➢What kind of mathematical analysis helped you decide the above trade off?

➢Can you suggest any other trade off pattern which can lead to better profits for both farmers?

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Answer 1

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