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According to an early study conducted by the U.S. Department of Agriculture, 8,500 pounds of milk can be produced during a specified time period by a cow fed the following combinations of hay and grain:
(b) If the price of a pound of hay equals the price of a pound of gain, should a cow be fed 5,000 pounds of hay and 6,154 pounds of gain? Why or why not?
(c) If the price of a pound of hay equals 1.05 times the price of a pound of grain, what is the least-cost combination of inputs to produce 8,500 pounds of milk?
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