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

question 18

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.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Foreign Competition

The presence and impact of producers from other countries competing in a domestic market.

Anticompetitive Monopolist

A single seller in a market who uses their dominant position to prevent or reduce competition through unfair practices.

Antitrust Laws

Regulations established by governments to prevent large businesses from monopolizing certain markets, ensuring fair competition.