Corny Corp grows crops on farmland in Texas, Oklahoma, and Georgia. Corny Corp sells its harvest to HEB and other national grocery chains. Cracked Corn, a small MBE in Austin, grows a limited crop on five acres, chiefly for personal use for popcorn production. From time to time, Cracked Corn sells some of its popcorn on Saturday's at the local farmers market. Which of these growers are subject to federal regulation under the Commerce Clause rd)

A large share of the world supply of cocoa beans comes from Ghana and Ivory Coast. Suppose that the marginal cost of producing cocoa beans is constant at GHC1000 per bag and the demand for cocoa beans is described by the following schedule. Price (GHC) Quantity (bags) 5000 6000 7000 8000 9000 10000 11000 12000 8000 7000 6000 5000 4000 3000 2000 1000 a) If there were many suppliers of cocoa beans, what would be the price and quantity? b) If there were only one supplier of cocoa, what would be the price and quantity? c) At a meeting in October 2017 in Accra, the leaders of the two leading producers of cocoa beans discussed the possibility of cooperating to boost the price of cocoa. If Ghana and Ivory Coast formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be Ghana's production and profit? f) What would happen to Ghana's profit if it increased its production by 1000 cocoa while Ivory Coast stuck to the cartel agreement? g) Use your…

Suppose that a chemical manufacturing plant is releasing nitrogen oxides into the air, and these emissions are associated with health and ecological damages. Economists have estimated the following marginal costs and benefits for the chemical market, where Q is monthly output in thousands of pounds and P is price per pound. MSB = 50 – 0.4Q; MSC = 2 + 0.4Q;  MEB = 0; MEC = 0.2Q. Find the dollar value of a product charge that would achieve an efficient solution.

Switzerland has over 500 watch manufacturers. Most of them are quite small and they cluster around the so-called "Watch Valley" which is an area covering the Jura Mountains from Geneva to Basel. Swiss watches dominate the world's fine watch market. a) Explain how geographic clustering of the Swiss watch industry helps to create external economies of scale. b) It is quite possible that some other country has a lower average cost curve for watch production (e.g. due to lower wages). Yet Switzerland continues to be the world's largest producer and exporter of fine watches. Explain why external EOS have a tendency to cause established pattern of production and trade to be "locked in."