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?
Expert's answer
Answer in progress...
Learn more about our help with Assignments: Economics of Enterprise
The expert did excellent work as usual and was extremely helpful for me.
"Assignmentexpert.com" has experienced experts and professional in the market. Thanks.
#332078 on Oct 2022
#332078 on Oct 2022
Comments