Question

. 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 Pe 2,000 50, and demand for fertilizer is given by Pr= 500-20. The cost of producing Q cow-fertilizer bundles is C-5,000+200g. To maximize profits, the ranch should a. produce 164.29 cow-fertilizer units, sell 164.29 cattle, and sell 164.29 tons of fertilizer. b. produce 180 cow-fertilizer units, sell 180 cattle, and sell 125 tons of fertilizer. c. produce 180 cow-fertilizer units, sell 180 cattle, and sell 75 tons of fertilizer. d. produce 180 cow-fertilizer units, sell 180 cattle, and sell 180 tons of fertilizer. e. produce 200 cow-fertilizer units, sell 200 cattle, and dispose of all the fertilizer in an environmentally friendly manner.

Answer 1

Answer:

Given P, 2, 000-5Q. Determine the total revenue CRC Differentiating the above equation with respect to q we get MRe 2,000 10Qc TC 5,000 200Q Diff above equation wrt Q we get MC 200 Now equate MRc to MC we get 2,000-100c-200 100c 1800 Qc 180 units Pc 2000 -5 180S1100 Similary solve for fertilizers P500-20f

= 500-4Q f Therefore, 1Lf Now equate MRfto MC we get 500-4Qf 200 4Qf 300 Qf= 75 units Pf 500 -275-500-150 S350 Option C