EQ 10 2010 answer

EQ 10 2010 answer - CS = $500 TES = $1,250 (d) True or...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EQ # 10 – AGEC 105 – March 22, 2010 (8 points) Name: _______________ UIN:_____________ Section:__________ 1. If the marginal physical product of fertilizer in the production of corn is 60 bushels/ton, and if the price of corn is $5/bushel, then the marginal value product of fertilizer is ___ $300 _ per ton. MVP = P x MPP = 60 bu/ton x $5/bu = $300/ton 2. Given the following diagram, (a) What is the market clearing price of milk? $2.50 (b) What is the producer surplus? $750 (c) What is the total economic surplus?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CS = $500 TES = $1,250 (d) True or False . With a successful milk advertising campaign (Got Milk?), the market price of milk will rise and the market clearing quantity of milk will fall. $3.50 $2.50 P Mil k 1,000 Q Milk $1.00 S Milk D Milk 3. Given a leftward shift in demand for a product as illustrated below, fill in the blanks regarding questions about producer surplus. Producer Surplus Before __ C + D + E __ After ____ E _____ Change ____-C - D ____ P P 1 P 2 Q A B I D 1 D 2 C D G H E F S...
View Full Document

Page1 / 2

EQ 10 2010 answer - CS = $500 TES = $1,250 (d) True or...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online