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Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at the end of the year. The bond earns 5% interest and the cattle price depends on the number of animals sold. Using the table below, the individual optimum choosing cattle is and the social optimum is # Cattle 1 2 3 4 5 1:4 3; 1 4; 3 5:2 Total Cattle Average income Income $1,400 $2,750 $4,050 $5,300 $5,850 Marginal Income

Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at the end of the year. The bond earns 5% interest and the cattle price depends on the number of animals sold. Using the table below, the individual optimum choosing cattle is and the social optimum is # Cattle 1 2 3 4 5 1:4 3; 1 4; 3 5:2 Total Cattle Average income Income $1,400 $2,750 $4,050 $5,300 $5,850 Marginal Income

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Incorrect Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at the end of the year. The bond earns 5% interest and the cattle price depends on the number of animals sold. Using the table below, the individual optimum choosing cattle is and the social optimum is # Cattle 1 2 3 4 5 1; 4 3; 1 4; 3 5; 2 Total Cattle Average lincome Income $1,400 $2,750 $4,050 $5,300 $5,850 Marginal Income 11
Transcribed Image Text:Incorrect Villagers each have $1,200 to invest in either cattle or a government bond. They will sell either at the end of the year. The bond earns 5% interest and the cattle price depends on the number of animals sold. Using the table below, the individual optimum choosing cattle is and the social optimum is # Cattle 1 2 3 4 5 1; 4 3; 1 4; 3 5; 2 Total Cattle Average lincome Income $1,400 $2,750 $4,050 $5,300 $5,850 Marginal Income 11
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