The Owner of Black Angus Ranch Is Trying to Determine

question 74

Multiple Choice

The owner of Black Angus Ranch is trying to determine the correct mix of two types of beef feed, A and B, which cost 50 cents and 75 cents per pound, respectively. Five essential ingredients are contained in the feed, shown in the table below. The table also shows the minimum daily requirements of each ingredient.
$$\begin{array} { | l | l | l | l | } \hline & \text { Percent per } & \text { Percent per } & \begin{array} { l } \text { Minimum daily } \\\text { requirement }\end{array} \\\text { Ingredient}&\text {pound in Feed A}&\text { pound in Feed B } & \text { (pounds) } \\\hline 1 & 20 & 24 & 30 \\\hline 2 & 30 & 10 & 50 \\\hline 3 & 0 & 30 & 20 \\\hline 4 & 24 & 15 & 60 \\\hline 5 & 10 & 20 & 40 \\\hline\end{array}$$
The constraint for ingredient 3 is:

• A) .5A + .75B = 20
• B) .3B = 20
• C) .3B? 20
• D) .3B ? 20

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Definitions:

Public-sector Managers

Individuals responsible for directing, controlling, and overseeing the operations and budgets within government departments or public sector organizations.

Economically Efficient

A situation in which resources are allocated in a way that maximizes the net benefit to society, with no way to improve someone's condition without worsening another's.

Public Choice Theory

An economic theory that studies how public decisions and policies are made, considering individuals in the public sector make choices largely based on their own interests, similar to those in the private sector.

Private Sector

The part of the economy that is owned and operated by private individuals and companies, not controlled by the state, focusing on profit generation.