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Let us suppose that England, France and Spain produce the whole wheat, barley and oats in the world. The demand for wheat in the world requires 125 million hectares available for its production. Similarly, 60 million hectares of land are required for the production of barley and 75 for the production of oats. The total area available for this purpose in England, France and Spain is 70, 110 and 80 million hectares respectively.The number of hours required in England, France and Spain for the production of wheat in one hectare of land is 18, 13 and 16 hours respectively. The corresponding hours in the three countries for the production of barley in a hectare of land is 15, 12 and 12hours respectively. The number of hours required in England, France and Spain for the production of oats in one hectare of land is 12, 10 and 16 hours respectively. The cost for each working hour for the production of wheat in England, France and Spain is $ 3, $ 2.40 and $ 3.30 per hour respectively. The comparable costs for every working hour for the production of barley is $ 2.70, $ 3 and $ 2.80 respectively, while for the production of oats is $ 2.30, $ 2.50 and $ 2.10 respectively.The problem that must be addressed is the distribution of land used for each country so as to meet global needs and simultaneously minimize the total labor costs. Design and resolve the appropriate transportation model.

Macroeconomics, Economics

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