Production decisions Please use the information and table below to answer the next four questions. Suppose a Michigan dairy farmer has hired you as a consultant to help with their production decisions. The farmer is deciding what amount of concentrate to feed in their dairy cattle ration. The concentrate costs $0.17 per pound (variable input price). The farmer receives $0.18 per pound of milk (output price). Assume that the cow eats all the feed you give her (that is if you put 100 pounds in front of her, she will eat it so you need not worry about feed level exceeding capacity. Assume fixed costs are $1.00/day. Input Level Input Quantity (lbs of feed/day) Output (lbs milk/day) Total Physical Product Marginal Physical Product Average Physical Product Total Revenue ($0.18/lb milk) Total Cost ($0.17/lb) Profit MVP MIC MC MR 0 0 21 0 --------- --------- $3.78 $1.00 $2.78 ------ ------ ------- -- 1 6 40 19 19 19.00 $7.20 $2.02 $5.18 $0.57 $0.17 $0.05 $0.18 2 11 53 32 A 16.00 $9.54 $2.87 $6.67 $0.47 $0.17 $0.07 $0.18 3 16 65 44 12 14.67 $11.70 $3.72 $7.98 $0.43 $0.17 $B $0.18 4 21 73 52 8 13.00 $13.14 $4.57 $8.57 $C