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

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

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?

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

View Full Document
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

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern