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.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: If there are constant returns to scale
Q14: Robinson Crusoe's preferences over coconut consumption, C,
Q15: Al and Bill are the only workers
Q16: On a certain island there are only
Q17: Al and Bill are the only workers
Q19: Robinson Crusoe has exactly 14 hours per
Q20: The marginal rate of transformation between two
Q21: When there is production, a competitive equilibrium
Q22: A small company produces two goods, swords
Q23: Mandy is a master wood-carver and Jerry