Question: You are a beef farmer deciding on your ration for steers on your feedlot. You used your records and data from a local consultant to estimate the amount of hay and grain to put 400 pounds of gain on your cattle. You have constructed the table below. Fill in the table below and answer the following questions.
a) If the price of grain is $300/ton and the price of hay is $200/ton, what is the economically optimal amount of grain and hay to feed to your cattle?
b) How does your answer change if the price of grain increases to $350/ton and the price of hay decreases to $175/ton?