question 10 (4 points) clem oatley could grow wheat and barley. he could grow 75 bushels of wheat or 125…

question 10 (4 points) clem oatley could grow wheat and barley. he could grow 75 bushels of wheat or 125 bushels of barley using the same resources on an acre of his land. the price of wheat is $2.00 per bushel and the price of barley $0.80. show the benefits to clem from specialization. what should he specialize in? explain.

question 10 (4 points) clem oatley could grow wheat and barley. he could grow 75 bushels of wheat or 125 bushels of barley using the same resources on an acre of his land. the price of wheat is $2.00 per bushel and the price of barley $0.80. show the benefits to clem from specialization. what should he specialize in? explain.

Answer

Explanation:

Step1: Calculate revenue from wheat

Revenue from wheat = Quantity of wheat × Price of wheat. Given quantity of wheat = 75 bushels and price of wheat = $2 per bushel. So, Revenue from wheat = 75×2 = $150.

Step2: Calculate revenue from barley

Revenue from barley = Quantity of barley × Price of barley. Given quantity of barley = 125 bushels and price of barley = $0.8 per bushel. So, Revenue from barley = 125×0.8 = $100.

Step3: Determine specialization

Since $150 (revenue from wheat) > $100 (revenue from barley), Clem should specialize in wheat.

Answer:

Clem should specialize in wheat. The benefit of specialization in wheat is that he can earn $150 per acre compared to $100 per acre if he grows barley, resulting in an additional $50 in revenue per acre.