What if the price of wheat rose

Assignment Help Business Economics

Reference no: EM131159496

Suppose that you own a 10-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $35 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. With these inputs, the land will yield 40 bushels of wheat per acre.

If the price at which wheat can be sold is $5 per bushel and if farmers want to earn a normal profit of $10 per acre, what is the most that any farmer would pay to rent your 10 acres? $

What if the price of wheat rose to $6 per bushel? $

Reference no: EM131159496

Questions Cloud

Diagnostic testing facilities tend to order more tests : Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients.

Ignoring any supply-side effects : Ignoring any supply-side effects, to close a recessionary gap of $100 billion with a government expenditure multiplier of 5, the government could

About performing manufacturing activity in several locations : Which of the following statements is true about performing a manufacturing activity in several locations at once? A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high. Perform..

Determine the inflation rate : Array Solutions requires a 14 percent return on their projects. Analysis shows that even though they have been earning the desired 14 percent, their real return appears to be only 10 percent when they look at what they can buy with their returns. Exp..

What if the price of wheat rose : Suppose that you own a 10-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $35 per acre for seed, $80 per acre for fertilizer, and $70 per acre for equipment rentals and labor. What if the p..

Predatory pricing-what is so bad about price fixing : Apex Manufacturing charges Zenith Manufacturing with predatory pricing (that is, selling below cost) What do you think anti-trust authorities will want to consider before they determine whether prosecute Zenith for unfair practices in restraint of tr..

Losing share long term could mean shutting down factories : The following quotation appeared in a Wall Street Journal article on the battle for market share in the automobile industry in 2000: “The huge fixed costs involved in developing new vehicles and running big auto factories means auto makers feel compe..

What was economic profit for the year : Ariana withdrew $400,000 out of her personal savings account and used it to start her new internet cafe. the savings account pays 2 percent interest per year. What was Ariana's accounting profit for the year? What was Ariana's economic profit for the..

Arrangements to accomodate lessened sensory acuity : "Space" is not just meant as Captain Kirk's "final frontier" in Star Trek. "Space" is also a term used in design to have the purpose in a long-term care facility of compensating the enviornmental arrangements to accomodate lessened sensory acuity, an..

User Account

All Pages