Question

A Viking village, Kattegat, has a nearby forest that they use for hunting. The Vikings can send out a number, v. of Vikings into the forest to hunt for wild boar. The cost of sending one Viking into the forest hunting is 2 SEK (the Viking could have knitted a scarf that would have sold for 2 SEK had he/she not gone hunting). One wild boar can be sold for a market price of 2 SEK a constant price). Total wild boar production is given by: f(1) = 1079. The Viking queen Lagerda runs the village with absolute authority and decides how many Vikings to send hunting. a) How many Vikings does Lagerda send hunting? b) How large are total profits? (7 points) (3 points)

Answer 1

A Viking village, Kattegat, has a nearby forest that they use for hunting . The Viking can send out a number, v,of vikings into the forest to hunt for wild boar. The cost of sending one Viking into the forest hunting is 2 SEK. One wild boar can be sold for a market price of 2 SEK.

Given that:

f(u) = 1011. a) How many Vikings does lagerda send hunting? → The total profit is TR -TC.. -Total Revenue TR - Price * output TC = 2 x number of Vikings TC = av T = P * F (U) - 2u π =2*loru-2v 00 FOC : do du V -2 - 0 o=2 -IV = 5 V* =25 b) How large are torcy profits ? > T = 20 * 128-2 #25 T=20*5-50 T = 100-50 T=50 $