A village has five residents, each of whom has accumulated savings of $100. Each villager can use the money to buy a government bond that pays 12% interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in table below. information is Number of goats Price per 2-year old goat Income per goat 1 130 30 2 125 25 3 120 20 4 115 15 5 105 5 Refer to the table above in Q10. Suppose a village elder decides the total number of goats and bonds with the goal of maximizing total village income. The village income will be ___. Answer: 586
A village has five residents, each of whom has accumulated savings of $100. Each villager can use the money to buy a government bond that pays 12% interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in table below. information is Number of goats Price per 2-year old goat Income per goat 1 130 30 2 125 25 3 120 20 4 115 15 5 105 5 Refer to the table above in Q10. Suppose a village elder decides the total number of goats and bonds with the goal of maximizing total village income. The village income will be ___. Answer: 586
Chapter32: The Land Market And Natural Resources
Section: Chapter Questions
Problem 9E
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Transcribed Image Text:A village has five residents, each of whom has accumulated savings of $100. Each villager can use the money to buy a government
bond that pays 12% interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price
of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons,
which in turn depends on the number of goats sent onto the commons, as shown in table below.
information is
Number of
goats
Price per
2-year old goat
Income per
goat
1
130
30
2
125
25
3
120
20
4
115
15
5
105
5
Refer to the table above in Q10. Suppose a village elder decides the total number of goats and bonds with the goal of maximizing total
village income. The village income will be ___.
Answer: 586
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