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From a Tract of Land, a Developer Plans to Fence

question 149

Multiple Choice

From a tract of land, a developer plans to fence a rectangular region and then divide it into two identical rectangular lots by putting a fence down the middle. Suppose that the fence for the outside boundary costs $6 per foot and the fence for the middle costs $4 per foot. If each lot contains 4,600 square feet, find the dimensions of each lot that yield the minimum cost for the fence. Round your answer to two decimal places. ​​

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Definitions:

Third Unit

In economic terms, it refers to purchasing or producing a third unit of a good or service, often discussed in the context of marginal analysis.

Socially Optimal

A state or outcome of an economic or social process that maximizes societal welfare, taking into account all costs and benefits to society.

Fair-Return

A principle whereby regulated entities are allowed to set prices that cover their costs and provide a reasonable profit.

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers based on various factors.

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