1)A pig weighing $180 pounds gains 5.5 pounds per day and costs 50 cents a day to keep. The market price for pigs is a dollar per pound, but is falling a cent and half per day.

(a) When should the pig be sold and at what profit?

(b) Compute the sensitivity of the best time to sell to the 50 cents cost per day assumption in the model.

(c) Compute the sensitivity of the maximal profit to to the 50 cents cost per day assumption in the model.

(d) Repeat part (b) and (c) for the the cent and half assumption for the the rate at which the price is falling.

(e) Repeat part (b) and (c) for the 5.5 pounds per day growth rate assumption.

(f) If a new feed costing 65 cents per day would lead to a growth rate of 8 pounds per day,would it be worth switching feed? (g) What would be the minimum improvement in growth rate that would make the new feed worthwhile