Solved

A Mountain Village Owns a Common Pasture Where Villagers Graze

Question 5

Multiple Choice

A mountain village owns a common pasture where villagers graze their goats.The cost to a goat owner of owning and caring for a goat is 4 groschens.The pasture gets overgrazed if too many goats share the pasture.The total revenue from all goats on the common pasture is f (g) = 48g - 2g2, where g is the number of goats on the pasture.The town council notices that total profit from the pasture is not maximized if villagers are allowed to pasture goats for free.The council decides to allow a goat to use the common pasture only if its owner buys it a goat license.To maximize total profit (of villagers and council) , how many groschens per goat should the council charge?


A) 12
B) 20
C) 24
D) 26
E) 22

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents