MSQE ECO-2007

[Arya]

This question seems like a recursion problem to me.I am not able to solve this.

[Dreyfus]

[Arya]

Thanks for your reply.However I have some doubts.
In part 1, How will the production start since at the beginning we don't have any corn or machine.

In part 2,
I guess the cost will include price of raw materials  which includes cost of corn and machine.
I think the equations should be,
p(corn)= 0.1 * p(corn) + 0.4*p(machine) + 10

p(machine)=0.3*p(corn) + 0.6 * p(machine) + 40

please verify this.