Question #15559
Rancher Profit Function: Π(X) = 100X – X² for 0 ≤ X ≤ 100
Farmer Utility Function: U(W,X) = (W)(100 – X) for 0 ≤ X ≤ 100
What is the efficient number of cattle to run?
Suppose the rancher gets to choose how many cattle to run, but the government charges him a
tax T on each cow. At what tax rate T* will the rancher choose to run the efficient number of
cattle?
Farmer Utility Function: U(W,X) = (W)(100 – X) for 0 ≤ X ≤ 100
What is the efficient number of cattle to run?
Suppose the rancher gets to choose how many cattle to run, but the government charges him a
tax T on each cow. At what tax rate T* will the rancher choose to run the efficient number of
cattle?
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#339914 on Dec 2023
#339914 on Dec 2023
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