In Baggs, Wyoming, cattle can be produced according to the following process: C = G/20 + P/30, where C is the number of cattle, G are bushels of grain, and P are acres of pasture.If grain costs $5 per bushel and pasture costs $4 per acre, how many cattle can Rancher Roy produce with a budget of $3,000?

Question

Quizplus · Accepted Answer

To maximize cattle production, Rancher Roy should allocate his budget to minimize the cost per cattle. The cost per cattle is $5*(1/20) + $4*(1/30) = $0.25 + $0.1333 = $0.3833. With a budget of $3,000, he can produce 3000/0.3833 ≈ 30 cattle.

In Baggs, Wyoming, Cattle Can Be Produced According to the Following