Solved

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

Question 25

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 - 5Qc, 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 160 cow-fertilizer units, sell 160 cattle, and sell 62.50 tons of fertilizer.
B) produce 160 cow-fertilizer units, sell 160 cattle, and sell 12.50 tons of fertilizer.
C) produce 160 cow-fertilizer units, sell 160 cattle, and sell 160 tons of fertilizer.
D) produce 116.67 cow-fertilizer units, sell 116.67 cattle, and sell 116.67 tons of fertilizer.
E) produce 200 cow-fertilizer units, sell 200 cattle, and dispose of all the fertilizer in an environmentally friendly manner.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions