Question
For each carload of ore removed from the Matchless Mine, one pound of lead and one ounce of silver is smelted. The cost of mining
For each carload of ore removed from the Matchless Mine, one pound of lead and one ounce of silver is smelted. The cost of mining and processing one carload of ore is C(Q)=500+2Q+0.03Q^2. The demand for silver (per ounce) is Ps=50-0.40Qs and the demand for lead (per pound) is Pl=5-0.03Ql. What should the owners of the Matchless Mine do to maximize profits (in the long run)?
a.Mine and process 83.33 carloads of ore, sell 62.50 ounces of silver, and sell 83.33 pounds of lead.
b.Mine and process 62.50 carloads of ore, sell 62.50 ounces of silver, and sell 25 pounds of lead.
c.Shut down the mine.
d.Mine and process 83.33 carloads of ore, sell 55.81 ounces of silver, and sell 83.33 pounds of lead.
e.Mine and process 57.61 carloads of ore, sell 57.61 ounces of silver, and sell 57.61 pounds of lead.
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