with or without irrigation. In western Kansas, corn can be grown in two ways Dryland farmers, who do not irrigate their corn, have long-run average costs: LAC, = q² – 20q+105 and long-run marginal costs: LMC, = 3q² – 40q+105 | D where q is measured in thousands of bushels. Farmers lucky enough to have water rights or river access have lower costs: Their long-run average cost is LAC, = q² – 16q+67 and their long-run marginal cost is LMC, = 3q² – 32q+67 If the corn market is in long-run equilibrium, with both dryland and irrigated corn being sold, what must the price of corn be?

with or without irrigation. In western Kansas, corn can be grown in two ways Dryland farmers, who do not irrigate their corn, have long-run average costs: LAC, = q² – 20q+105 and long-run marginal costs: LMC, = 3q² – 40q+105 | D where q is measured in thousands of bushels. Farmers lucky enough to have water rights or river access have lower costs: Their long-run average cost is LAC, = q² – 16q+67 and their long-run marginal cost is LMC, = 3q² – 32q+67 If the corn market is in long-run equilibrium, with both dryland and irrigated corn being sold, what must the price of corn be?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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