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In the Process of Producing 1 Hormone-Free, Stress-Free, Happy Cow

Question 18

Multiple Choice

In the process of producing 1 hormone-free, stress-free, happy cow, the New Age Cattle Ranch produces 1 ton of natural, organic plant fertilizer.Demand for the ranch's cattle is given by Pc = 2,000 - 20Qc, and demand for fertilizer is given by Pf = 500 - 4Qf.The cost of producing Q cow-fertilizer bundles is C = 5,000 + 400Q.To maximize profits, the ranch should


A) produce 40 cow-fertilizer units, sell 40 cattle, and sell 40 tons of fertilizer.
B) produce 40 cow-fertilizer units, sell 40 cattle, and sell 12.50 tons of fertilizer.
C) produce 62.50 cow-fertilizer units, sell 40 cattle, and sell 62.50 tons of fertilizer.
D) produce 43.75 cow-fertilizer units, sell 43.75 cattle, and sell 43.75 tons of fertilizer.
E) produce 50 cow-fertilizer units, sell 50 cattle, and dispose of all the fertilizer in an environmentally friendly manner.

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