-The table above gives the number of cows and the milk they can produce on a common pasture. The marginal cost of allowing a cow to graze is $0 per cow. The efficient number of cows equals

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Quizplus · Accepted Answer

The efficient number of cows is where the marginal benefit of adding a cow is equal to the marginal cost. The marginal benefit of adding a cow is the additional milk produced by that cow. The marginal cost of adding a cow is $0. In this case, the marginal benefit of adding a cow is 5 gallons of milk for each cow up to 45 cows. After 45 cows, the marginal benefit of adding a cow is 0 gallons of milk. Therefore, the efficient number of cows is 45.

-The Table Above Gives the Number of Cows and the Milk