Calculate the average variable cost per bushel of wheat

Assignment Help Business Economics

Reference no: EM131096077

The production of agricultural products like wheat is an example of a perfectly competitive industry. Answer each part of this question. A. The average variable cost per acre planted with wheat was $107 per acre. Assuming a yield of 50 bushels per acre, calculate the average variable cost per bushel of wheat. B. The average price of wheat received by a farmer in 2014 was $2.65 per bushel. Do you think the average farm would have exited the industry in the short run? Explain. C. With a yield of 50 bushels of wheat per acre, the average total cost per farm was $3.80 per bushel. The harvested acreage for wheat in the United States fell from 418,000 acres in 2014 to 274,000 in 2015. Using the information on prices and costs here and in parts a and b, explain why this might have happened. D. Using the above information, do you think the prices of wheat were higher or lower prior to 2014? Why?

Reference no: EM131096077

Questions Cloud

How does cultural competency occur : The Purnell Model when working with subcultures (immigration status, gender, political beliefs, socioeconomic status, sexual orientation, educational status, etc.).

Calculate economic growth rate and growth rate of real GDP : China’s real GDP was 7,394 billion yuan in 2005 and 8,000 billion yuan in 2006. China’s population growth rate in 2006 was 0.5 percent. Calculate China’s economic growth rate and growth rate of real GDP per person in 2006.

What is the equilibrium price and quantity : In a market demand and supply equations are: The demand curve is given as: P = 68 - 2Q The supply curve is given as: P = 20 + 2Q. Assuming a perfectly competitive market, (Please show all your work): 1) What is the equilibrium price and quantity?

Describe the concept of variant characteristics of culture : Which characteristics can change and which cannot? Is equality for variant cultures typically supported in the United States? Provide examples to support your statement.

Calculate the average variable cost per bushel of wheat : The production of agricultural products like wheat is an example of a perfectly competitive industry. Answer each part of this question. A. The average variable cost per acre planted with wheat was $107 per acre. Assuming a yield of 50 bushels per ac..

Appropriate economic decisions for an organization : Analyze the data you have selected to determine how to use them to make appropriate economic decisions for an organization. As you are analyzing the data, apply econometrics methods (linear regression, statistical mathematics, nonlinear regression..

This project applies linear regression models : This project applies linear regression models to the estimation of automobile prices. The dependent variable is the automobile prices. The independent variables are the variables to explain the price.

Why are sources so controversial and difficult : Finally, answer this question: Why are sources so controversial and difficult? Why is it important that our sources be selected with so much care? Does this play into our discussion last week about variables?

How o''connor uses elements of fiction to address theme : Explain how O'Connor uses elements of fiction to address the theme of characters struggling with spiritual questions in bizarre, incongruous situations.

User Account

All Pages