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{"ops":[{"insert":"Whenever the total factor cost function and the total value of the product function are\n\nparallel to each other, profits will be maximized. Is this statement true or false? Explain.\n\n Suppose that the production function is the one found in Problem 5, Chapter 2. Corn sells for $4.00 per bushel and nitrogen sells for $ 0.20 per pound. At what nitrogen application rate are profits maximized?\n\nExplain the terms necessary and sufficient, in terms of a farmer seeking to maximize profits in the feeding of dairy cattle for milk production.\n\n Is the shadow price of a dairy feed ration different from the price the farmer pays per pound of the ration? Explain. Of what importance is a shadow price to a farmer seeking to maximize profits from a dairy herd?\n\nExplain the consequences to the farmer if the production function for milk were a linear function of the amount of feed fed to each cow.\n"}]}
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