In the Shire, farmers can rent land for $100 per acre per year. All the acres are identical. Merry Brandybuck rents 30 acres on which he grows carrots. Pippin Took rents 20 acres on which he grows...

In the Shire, farmers can rent land for $100 per acre per year.

All the acres are identical. Merry Brandybuck rents 30 acres

on which he grows carrots. Pippin Took rents 20 acres on

which he grows corn. They sell their produce in a perfectly

competitive market. Merry boasts that his value of the marginal product of land is twice as large as Pippin’s. Pippin

replies that, if this is true and if Merry wants to maximize his

profit, Merry is renting too much land. Is Pippin right?

Explain your answer.