Question: please help! 1. A farmer mills his own cattle feed and has the following information. Hay Vitamin A 20 Cost 1.25 25 2 0 Corn
please help!
1. A farmer mills his own cattle feed and has the following information. Hay Vitamin A 20 Cost 1.25 25 2 0 Corn 5.25 1.75 0.35 0.01 0 1.5 Soybeans Salt 11 5.5 0.15 0.01 0 0 Protein Fat Salt Vitamin A Energy 0 0.05 0 1 0 0 0 1 0 0.5 1.25 0 0 He wants to create the lowest cost feed with the following requirements: protein is between 1500 and 3000 units, fat is between 20 and 40 units, salt is at least 100 units, vitamin A is at least 20 units, and energy is at least 250 units. a) What is the standard format? b) What will be his optimal feed mix? What will be his cost? c) What does the price of soybeans need to be before he includes it? Why? d) What is the shadow price of salt? What does this mean? e) How can both fat constraints be not binding? f) If the farmer could buy his corn for next week at $5 a bushel, should he do that? Why? 1. A farmer mills his own cattle feed and has the following information. Hay Vitamin A 20 Cost 1.25 25 2 0 Corn 5.25 1.75 0.35 0.01 0 1.5 Soybeans Salt 11 5.5 0.15 0.01 0 0 Protein Fat Salt Vitamin A Energy 0 0.05 0 1 0 0 0 1 0 0.5 1.25 0 0 He wants to create the lowest cost feed with the following requirements: protein is between 1500 and 3000 units, fat is between 20 and 40 units, salt is at least 100 units, vitamin A is at least 20 units, and energy is at least 250 units. a) What is the standard format? b) What will be his optimal feed mix? What will be his cost? c) What does the price of soybeans need to be before he includes it? Why? d) What is the shadow price of salt? What does this mean? e) How can both fat constraints be not binding? f) If the farmer could buy his corn for next week at $5 a bushel, should he do that? Why
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