Question

Brett has almond​ orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this​ year's crop with him. Assume he produces 1 comma 0221,022 tons of almonds and his neighbor produces 779779 tons of walnuts. If the market price of almonds is $ 104$104 per ton and the market price of walnuts is $ 113$113 per​ ton: a. Should he make the​ exchange? b. Does it matter whether he prefers almonds or​ walnuts? Why or why​ not? a. Should he make the​ exchange? The market value of the almond crop is ​$nothing. ​(Round to the nearest​ dollar.)

Answer 1

a. Should he make the​ exchange?

• No he shouldn't, because the market value of Brett's almond production is much higher than the market value of his neighbor's walnut production.

b. Does it matter whether he prefers almonds or​ walnuts? Why or why​ not?

• If he had a couple of trees maybe, but there is no way that one single person or family eats more than 1,000 tons of almonds. So Brett's sudden despise for almonds does not matter, because even if he hates almonds, he should love money.

The market value of the almond crop is ​$88,027

Step-by-step explanation:

Brett produces 1,022 tons of almonds x $104 per ton = $106,288 (market value)

neighbor produces 779 tons of walnuts x $113 per ton = $88,027 (market value)