Hw 5 #3 - c) optimal # of cows. Cows will enter until...

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Hw 5 # 3 a) Q = (5N(300-N)) Each cow consumer (Q/N) P = 10 OC = 50 ∏ = PQ – C ∏ = (10)(5N(300-N)) – 50N ∏ = 50N(300 – N) – 50N b) Average weight gain per cow total weight gain Q = (5N(300-N)) Each cow consumes Q/N = (5N(300-N))/N = 5(300-N) weight gain per cow
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Unformatted text preview: c) optimal # of cows. Cows will enter until individual = 0 = 50(300 N) 50 = 0 N = 299 Cows. d) Joint profits is maximized where MR = MC MR = 15000 2*50N MC = OC = 50 MR = MC 15000 100N = 50 N = 149.5 or 149 cows....
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