Fruit Flowers analysis

Fruit Flowers analysis - A PPC represents the combination...

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C 1 C max Kocher 1 ECO112 7 February 2007 A recent surge of cold weather has ill stricken Californian farmers recently. This “cold snap” has destroyed much of this winter’s avocado and fresh-cut flower crop and has withered up to three-quarters of the citrus crop. Almost $1 billion dollars in damage has occurred to this season’s crop in only four subfreezing nights. California Governor, Arnold Schwarzenegger has asked for federal disaster aid to aid his state’s citrus industry which is the nation’s largest producer of raw citrus for sale. Seventy percent of the citrus crop remains, however that number is dwindling each day as temperatures have been below 28 degrees recently which will likely lead to higher citrus prices. Likewise, falling temperatures are increasing greenhouse heating costs for fresh-flower farmers. Hopefully, government aid can offset some of the agriculture industry’s losses and allow the farmers on the brink of bankruptcy to keep their jobs.
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Unformatted text preview: A PPC represents the combination of two goods that an economy can produce at full output with available resources and technology. This economy of citrus and flowers has a straight PPC the resources used for flowers and citrus aren’t necessarily better suited for either. Both only need the warm climate and fertile land to grow on. The freezing temperatures are causing the raw resources (flowers and fruit) to die, a reduction of available resources. In this situation, the available resources of each product (fruit and flowers) are falling and concurrently, the maximum output of each good will fall which graphically is an inward shift along both the x (citrus) and y (flowers) axis. Flowers PPC: Flowers v. Citrus in California Kocher 2 F max F 1 Combination of goods at full production given available resources and technology (before climate change) (After climate change) Citrus...
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Fruit Flowers analysis - A PPC represents the combination...

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