(Problem 2a.) According to data from the U.S. Department of Agriculture\'s Natio

Question

(Problem 2a.) According to data from the U.S. Department of Agriculture's National Agricultural Statistics Service, 124 million acres of land in the United States were used for wheat or corn farming in 2004. Of those 124 million acres, farmers used 50 million acres to grow 2.158 billion bushels of wheat and 74 million acres of land to grow 11.807 billion bushels of corn. Suppose that U.S. wheat and corn farming is efficient in production. At that production point, the opportunity cost of producing one additional bushel of wheat is 1.7 fewer bushels of corn. However, farmers have increasing opportunity costs, so that additional bushels of wheat have an opportunity cost greater than 1.7 bushels of corn.
For each of the following production points, decide whether that production point is (i) feasible and efficient in production, (ii) feasible but not efficient in production, (iii) not feasible, or (iv) unclear as to whether or not it is feasible.
Farmers use 40 million acres of land to produce 1.8 billion bushels of wheat, and they use 60 million acres of land to produce 9 billion bushels of corn. The remaining 24 million acres are left unused. This production point is:

feasible but not efficient in production. feasible and efficient in production. unclear as to whether or not it is feasible. not feasible.

Explanation / Answer

Correct option: feasible but not efficient in production

Reason: Since 24 acres of land is unused, the production is inefficient.

Growing wheat and corn is efficient and feasible as it satisfies production constraint.

This makes the given production feasible but not efficient

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