A 200-pound steer can be sustained on a diet calling for various proportions of grass and grain. These combinations are shown in the table.
Pounds of Grass Pounds of Grain
50 ..........80
56 ..........70
60 ..........65
68 ..........60
80 ..........54
88 ..........52
a. Plot the isoquant corresponding to the inputs necessary to sustain a 200-pound steer. Comment on its shape.
b. The rancher’s cost of grass is $.10 per pound; the cost of grain is $.07 per pound. He prefers a feed mix of 68 pounds of grass and 60 pounds of grain. Is this a least-cost mix? If not, what is? Explain.
c. The rancher believes there are constant returns to scale in fattening cattle. At current feed prices, what input quantities should he choose if he wants to raise the steer’s weight to 250 pounds?