Suppose Pigs (P)can Be Fed Corn-Based Feed (C)or Soybean-Based Feed

question 23

Multiple Choice

Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S.If the price of corn feed is $2 and the price of soybean feed is $6,what is the cost minimizing combination of producing P = 200?

• A) C = 100
• B) S = 40
• C) C = 50, S = 20
• D) All points on the isoquant would cost the same, Q = 200.

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Definitions:

Balance Sheet

A financial statement that shows what the company owes, what it owns, including the shareholder’s stake, at a particular point in time.

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Production and Sales Process

The combined sequence of operations involved in manufacturing goods and selling them to customers.

Days Sales Outstanding (DSO)

A measure of the number of days that it takes to collect on accounts receivable.