EQ 8 FALL 2010 answer

EQ 8 FALL 2010 answer - $5/bu = $100/ton 1.5pts EQ#8 EQ#8...

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EQ #8 EQ #8 AGEC 105 (4 pts) October 18, 2010 AGEC 105 (4 pts) October 18, 2010 1. Assume that the price of soybean is $5.00 per bushel. When we apply 10 tons of fertilizer on our 100 acres of soybeans, the total yield is 2,000 bushels. When we apply 30 tons of fertilizer, the total yield is 2,400 bushels. What is the marginal value product per ton of fertilizer? MPP= (2400-2000)bu/(30-10)tons=20 bu/ton MVP=MPP x P=20 bu/ton x
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Unformatted text preview: $5/bu = $100/ton. 1.5pts EQ #8 EQ #8 AGEC 105 (4 pts) October 18, 2010 AGEC 105 (4 pts) October 18, 2010 2. Consider the following diagram. (a) What is the market clearing price of soybean. $8 (b) What is the producer surplus. PS= 0.5(8-3) 1000 = 2500. (c) What is the total economic surplus. CS = 0.5(12-8)1000=2000. ES=PS+CS =4500. $12.00 $8.00 P soyb ean 1,000 Q soybe an $3.00 S soybe an D soybe an 0.5pt 1pt 1pt...
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EQ 8 FALL 2010 answer - $5/bu = $100/ton 1.5pts EQ#8 EQ#8...

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