Think Break 10 - Think Break #10 You work for UWEX and have...

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Unformatted text preview: Think Break #10 You work for UWEX and have data on several farms in your seven county district You look at all farms with similar sized milking parlors and a similar number of workers You calculate the average production per cow as the number of cows varies among the farms Use these data in the table to recommend the optimal milk output and herd size Think Break #10 Cows Milk cwt 0 20 40 60 80 100 120 140 160 180 200 FC VC 0 67000 TC 10000 MC 0 (VC = $3350/cow) 0 10000 4800 10000 77000 13.96 9640 10000 134000 144000 13.84 14490 10000 201000 211000 19320 10000 268000 278000 24100 10000 335000 345000 28824 10000 402000 412000 14.18 33488 10000 469000 479000 14.37 38096 10000 536000 546000 14.54 42624 10000 603000 613000 14.80 47060 10000 670000 680000 15.10 1) Fill in the missing MC's 2) If the milk price is $14/cwt, what is the optimal milk output and farm size? Think Break #10 Answer Cows Milk cwt 0 20 40 60 80 100 120 140 160 180 200 FC VC 0 67000 TC 10000 MC 0 0 10000 4800 10000 77000 13.96 9640 10000 134000 144000 13.84 14490 10000 201000 211000 13.81 = (211000 144000) 19320 10000 268000 278000 13.87 28824 10000 402000 412000 14.18 33488 10000 469000 479000 14.37 38096 10000 536000 546000 14.54 42624 10000 603000 613000 14.80 47060 10000 670000 680000 15.10 (14490 9640) 24100 10000 335000 345000 14.02 = (345000 278000) (24100 19320) P = MC when Milk = 241,000 cwt with 100 cows ...
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This note was uploaded on 08/08/2008 for the course AAE 320 taught by Professor Mitchell during the Spring '08 term at University of Wisconsin.

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