1.20. Consider the comparative statics of the farmers fencing problem in Learning-By-Doing Exercise 1.4, where L is...

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1.20. Consider the comparative statics of the farmer’s fencing problem in Learning-By-Doing Exercise 1.4, where L is the length of the pen, W is the width, and A ! LW is the area.

a) Suppose the number of feet of fence given to the farmer was initially F1 ! 200. Complete the following table. Verify that the optimal design of the fence (the one yielding the largest area with a perimeter of 200 feet) would be a square.

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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