Step-by-step explanation:
Given:
Where
- Y --> amount of wheat
- N---> amount of nitrogen added
(i)How much wheat will he get per hectare if he uses 100 kg of nitrogen per hectare?
This means 100 kg nitrogen is added to wheat
- Y = 7000+ 32*100 -0.1*100*100
- Y = 7000+3200 - 1000 = 10200-1000 = 9200 kg/hectare
(ii)Find the amount of nitrogen that he must use in order to maximise the amount of wheat produced.
To find the maximum, we find first derivative. Doing this is quite of easy,just subtract the exponent by 1(Just when there will be a term in the combination, suppose 5*x)and multiply the number by the original exponent.
Here
- d/dx = (0*7000*x⁰) + 1(32)*N¹-¹ - 2*0.1 N²-¹
- d/dx = 0 + 32 - 0.2N = 32-0.2N
Take second derivative by taking into account first derivative(Derivative of 32-0.2N)
- d²/dx² = 0*32*x⁰ - 1(0.2*N¹-¹) = 0-0.2 = - 0.2 (-ve,not possible)
We now equate the first derivative with 0:
- d/dx = 0
- 32-0.2N = 0
- 32 = 0.2N
- N = 32*10/2 = 160
We take into consideration N = 160 since of we see that the second derivative's result is negative.
In order to maximize the amount of wheat produced, we see the nitrogen he must use is 160 kg/hectare.
(iii)What is the maximum possible amount of wheat produced per hectare?
Maximum possible amount of wheat is when N = 160 kg/hectare.
Thus put N = 160
- Y = 7000+160*32 + 160²*(-0.1) =
- Y = 7000+ 5120 -2560
- Y = 12120 -2560
- Y = 9560 kg/hectare
(iv)Note that he achieved maximum amount of wheat,i.e. 9560 kg/hec
Given that total costs for producing wheat: €1300/hectares
He sold the wheat for €160 / tonnes
Note:
So maximum amount of wheat = 9560/1000 tonnes = 9.56 tonnes
1 tonne ---> €160
Thus as he sold the maximum amount of wheat = 9.56 tonnes,he gets 160*9.56 = 1529.6 euros
Also given that he gets 75 euros from straws
So in total he gets : 1529.6 + 75 = 1604.4 euros
However his total costs of production of wheat: 1300 euros
So his gain = 1604.4 - 1300 = 304.4 euros