Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 12 Oct 2017 My Price 7.00

proportions of grass and grain

  1. A 200-pound steer can be sustained on a diet calling for various proportions of grass and grain. These combinations are shown in the table.

 

Pounds of Grass

50

 

Pounds of Grain

80

56

70

60

65

68

60

80

54

88

52

    1. Plot the isoquant corresponding to the inputs necessary to sustain a 200-pound steer. Comment on its shape.

    2. The rancher’s cost of grass is $.10 per pound; the cost of grain is $.07 per pound. He prefers a feed mix of 68 pounds of grass and 60 pounds of grain. Is this a least-cost mix? If not, what is? Explain.

    3. The rancher believes there are constant returns to scale in fattening cattle. At current feed prices, what input quantities should he choose if he wants to raise the steer’s weight to 250 pounds?

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Oct 2017 01:10 PM My Price 7.00

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