For each carload of ore removed from the Matchless Mine, 1 pound of lead and 1 ounce of silver is smelted.The cost of mining and processing 1 carload of ore is C(Q)= 700 + 2Q + 0.09Q².The demand for silver (per ounce)is P_s = 40 - 0.30Q_s and the demand for lead (per pound)is P_l = 5 - 0.02Q_l.What should the owners of the Matchless Mine do to maximize profits (in the long run)? A)Mine and process 52.44 carloads of ore, sell 52.44 ounces of silver, and sell 52.44 pounds of lead. B)Mine and process 66.67 carloads of ore, sell 66.67 ounces of silver, and sell 13.64 pounds of lead. C)Mine and process 125 carloads of ore, sell 66.67 ounces of silver, and sell 125 pounds of lead. D)Mine and process 125 carloads of ore, sell 48.72 ounces of silver, and sell 125 pounds of lead. E)Shut down the mine.

Question

Quizplus · Accepted Answer

To maximize profits, the owners need to consider both the cost of mining and processing ore and the demand for silver and lead. The given cost function and demand functions for silver and lead suggest that profit maximization involves finding a balance between these costs and revenues. Option A suggests a balanced approach by mining and processing an amount of ore that aligns with the demand for both silver and lead, indicating an understanding of maximizing revenue while managing costs.

For Each Carload of Ore Removed from the Matchless Mine