In the process of producing 1 hormone-free, stress-free, happy cow, the New Age Cattle Ranch produces 1 ton of natural, organic plant fertilizer. Demand for the ranch's cattle is given by P_c = 2,000 - 20Q_c, and demand for fertilizer is given by P_f = 500 - 4Q_f. The cost of producing Q cow-fertilizer bundles is C = 5,000 + 400Q. To maximize profits, the ranch should

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To maximize profits, the ranch needs to produce where Marginal Revenue = Marginal Cost (MR=MC) for both cattle and fertilizer. For cattle: MR = change in total revenue / change in quantity sold = P_c = 2,000 - 40Q_c MC = change in total cost / change in quantity produced = 5,000 Setting MR = MC, we get: 2,000 - 40Q_c = 5,000 -40Q_c = -3,000 Q_c = 75 So the ranch should produce and sell 75/2 = 37.5 or approximately 43.75 cows to maximize profits. For fertilizer: MR = P_f = 500 - 8Q_f MC = 400 Setting MR = MC, we get: 500 - 8Q_f = 400 -8Q_f = -100 Q_f = 12.5 So the ranch should produce and sell 12.5 tons of fertilizer to maximize profits. Therefore, the best choice is D, which produces 43.75 cow-fertilizer bundles, sells 43.75 cows, and sells 43.75 tons of fertilizer.

In the Process of Producing 1 Hormone-Free, Stress-Free, Happy Cow