Did tomatofest suffer an economic loss

Assignment Help Econometrics

Reference no: EM131345716

Fierce storms in October 2004 caused TomatoFest Organic Heirlooms Farm to end its tomato harvest two weeks early. According to Gary Ibsen, a partner in this small business (Carolyn Said, "Tomatoes in Trouble," San Francisco Chronicle, October 29, 2004, C1, C2), TomatoFest lost about 20,000 pounds of tomatoes that would have sold for about $38,000; however, because he did not have to hire pickers and rent trucks during these two weeks, his net loss was about $20,000. In calculating the revenue loss, he used the post-storm price, which was double the pre-storm price.

a. Draw a diagram for a typical firm next to one for the market to show what happened as a result of the storm. Assume that TomatoFest's experience was typical of that of many small tomato farms.

b. Did TomatoFest suffer an economic loss? What extra information (if any) do you need to answer this question? How do you define "economic loss" in this situation?

Reference no: EM131345716

Questions Cloud

Index of refraction of the soap : Calculate the minimum thickness of a soap bubble film that results in constructive interference in the time reflected light if the film is illuminated with light whose wavelength in free space is λ = 600nm. The index of refraction of the soap film..

What is the maximum number of loads the circuit can drive : The circuit is protected by a 1-mA fuse with a nominal 100-Ω resistance. Each load is 10 kΩ. What is the maximum number of loads the circuit can drive without blowing the fuse?

Discuss developmental milestones related to the age : A 2-year-old Hispanic female, mother and grandmother present at the appointment, first child for mother, sixth grandchild for grandmother. Mother speaks English as primary language; grandmother speaks Spanish as primary language. Last well visit w..

Position of the image of the truck : An automobile mirror shows an image of truck located 10m from mirror. The focal length of the mirrors is - 0.60m. Find the magnification and the position of the image of the truck?

Did tomatofest suffer an economic loss : Did TomatoFest suffer an economic loss? What extra information (if any) do you need to answer this question? How do you define "economic loss" in this situation?

Describe the image for an object distance : A spherical mirror has a focal length of 10cm. Locate and describe the image for an object distance of 25cm.

Which is the profit maximizing output : Many marginal cost curves are U-shaped. As a result, it is possible that the MC curve hits the demand or price line at two output levels. Which is the profit maximizing output? Why?

What score for spain would the rankings change : If Spain's score were lowered in the Stability of government factor, to a 4, how would its overall score change? On this factor, at what score for Spain would the rankings change?

Discuss the evolution of our health care system : HCA205:Discussing the evolution of our health care system. Much of the evolution was due to the political landscape, societal constraints, consumer demand, escalating costs, and the advancement in technology. We have seen legislation and legal cas..

User Account

All Pages