ECON549 HW1 Part(b)
- Jon Duan
1. A turkey producer wants to feed her turkeys the minimum daily requirement of nutrients A, B and C at lowest costs. Daily requirements are 28 units of A, 20 of B and 12 of C. Feed grain X contains 1A, 1B and 1C, while feed grain Y contains 2A, 1B and ½C. The price of X = $1.25 and the price of Y = $2.00. The problem is to find the least-cost combination of X and Y that fulfills the minimum nutrient requirements.
(b) Provide a graphical solution of the original problem. Graphically show what happens if the price of X rises from $1.25 to $1.80? What happens if it rises to $2.00?