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

question 14

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 P_c = 2,000 - 20Q_c, and demand for fertilizer is given by P_f = 500 - 4Q_f. The cost of producing Q cow-fertilizer bundles is C = 5,000 + 400Q. To maximize profits, the ranch should

• A) produce 40 cow-fertilizer units, sell 40 cattle, and sell 40 tons of fertilizer.
• B) produce 40 cow-fertilizer units, sell 40 cattle, and sell 12.50 tons of fertilizer.
• C) produce 62.50 cow-fertilizer units, sell 40 cattle, and sell 62.50 tons of fertilizer.
• D) produce 43.75 cow-fertilizer units, sell 43.75 cattle, and sell 43.75 tons of fertilizer.
• E) produce 50 cow-fertilizer units, sell 50 cattle, and dispose of all the fertilizer in an environmentally friendly manner.