Small lawn-mowing service

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Consider the owners of a small lawn-mowing service. They can use one of two methods to mow lawns. Method 1 is to purchase a tractor that costs $200 a year to own and then spend $1 (for labor and gas) for every acre of grass cut. Method 2 is to spend $40 on a used push mower that will last one year and then spend $5 (for labor) for every acre of grass cut. a.Write down the total cost functions for the two methods, letting q represent the number of acres of grass cut per year. b.Write down the average total cost function and find the marginal cost for each of the two methods. c.Assume that the tractor and the push mower have no resale value at the end of the year. What is the smallest number of acres of grass cut per year for which the owners should buy the tractor? Show work.

Reference no: EM131095391

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