When is an exceptionally large crop causes farmers income

Reference no: EM13223861

1. Based on what you have learned in the chapter explain the following statement. "When there is an exceptionally large crop it causes farmers' incomes to fall."

Could someone please explain this? I think it means that because of the large crop, farmers' incomes will fall because of the increase supply per farmer. Prices would then have to be competitively low to sell due to the high supply and as such the income of the farmers will fall.

2. Based on utility maximization, explain the following: "It is irrational for an individual to take the time to be completely rational in economic decision making."

Reference no: EM13223861

Questions Cloud

How can a business overcome customers real issues : To some people technology seems very complex. If people perceive technology as too complex , they may not buy the products with the complex technology . How can a business overcome customers real issues concerning technology complexity.

What is the role of inventory management in the automotive : What is the Role of Inventory Management in the automotive industry. How does it benefit productivity? Discuss with examples pertaining to Operations Management and Operations Management perspectives. (1500 -2000 words)

What is the probability to complete the task : the time it takes a worker on an assembly line to complete a task is exponentially distributed with a mean of 8 minutes. What is the probability that it will take a worker between 6 and 10 minutes to complete the task

Identify a best solution for each of these two issues : Support your desired outcomes with a minimum of three outside scholarly sources. (academic journals, industry or business magazines, or association Web sites)

When is an exceptionally large crop causes farmers income : Could someone please explain this I think it means that because of the large crop, farmers' incomes will fall because of the increase supply per farmer. Prices would then have to be competitively low to sell due to the high supply and as such the ..

Perform resource leveling : Based on the data, perform resource leveling, assume each task can be performed independently of the other tasks

Pragmatism-analytic philosophy uniquely american movements : How are pragmatism and analytic philosophy uniquely American movements? What ideas make them different from the way Europeans of the same period were thinking?

What costs are incurred in a layoff : If business is expected to improve in one year, are layoffs financially justified? What costs are incurred in a layoff that are difficult to estimate in monetary terms?

How could the ecb offset the impact on inflation : Suppose a natural real output in the economy of Eudemonia grows at a steady rate of 3 percent per year. In the past, velocity has been approximately constant, and the Eudemonia Central Bank (ECB) has maintained a target rate of growth of 4 percent

User Account

All Pages