Think Break #9 (Review)

Jul 28, 2014

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Think Break #9 (Review). How many steers should you stock if the expected selling price is $90/cwt and steers cost $495 each? Hint: What’s the single input optimality condition?. Think Break #9 Answer.

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Think Break #9 (Review)

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Think Break #9 (Review) How many steers should you stock if the expected selling price is $90/cwt and steers cost $495 each? Hint: What’s the single input optimality condition?
Think Break #9 Answer How many steers should you stock if the expected selling price is $90/cwt and steers cost $495 each? Answer: 70 steers, since an additional steer costs $495, which equals the value of the marginal product generated by the added steer (rx = VMPx)