AGRI 215 Lecture : Famly Farms vs. Industrial Farms

68 views2 pages

sapphirecod69

7 Dec 2011

School

McGill University

Department

Agriculture

Course

AGRI 215

Professor

Caroline Begg Roger Cue

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Both farms were family farms, in that they were run by families but they are substantially different. In canada farm sizes were increasing, however there are less and less farms. Dairy farms 60 farms is average in quebec now, but before is was 20 or 30 cows. Long term trend in food prices is tending to go downwards. So in order to make a living farmers need to have more production as opposed to the past. To stay in business and make reasonable living must get larger. Is it negative cycle, bigger farms lower prices, lower prices lead to bigger farms (chicken and egg argument) Technology allows for more production and therefore farmers can accept lower pricers kevin wilsons farm (check name) Family farm: to sustain the family; industrial; to sustain the firm (is this different?) Farms evolve same as other businesses evolve with the circumstances over time. Grey area, they don"t stand in opposition to each other.

Related Questions

There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $15 for every $300 invested. Instructions: Enter your answers as whole numbers. a. What is the percentage rate of return for these 298 dairies? b. The other two dairies have a cost structure that generates profits of $28 for every $200 invested. What is their percentage rate of return? c. Assuming that the normal rate of profit in the economy is 10 percent, and firms cannot copy each other's technology, will there be entry or exit? d. Will the change in the number of firms affect the two that earn $28 for every $200 invested? No, because these firms are too small. Yes, because those exiting firms will spread the technology. No, because the exiting firms didn't belong in the industry. Yes, because those two can claim a larger market share. e. What will be the rate of return earned by most firms in the industry in long-run equilibrium? f. If firms can copy each other’s technology, what will be the rate of return eventually earned by all firms?

ceruleanmouse261

QUESTIONS (20 points each)

You have recently been appointed Special Economic Advisor to the government of XColonia, a small developing country in sub-Saharan Africa with an annual per-capita GDP of about $1000. XColonia has a large agricultural sector mostly consisting of small, family farms and a few large plantations. The distribution of land is very unequal. The country has a small manufacturing sector consisting of a large number of small firms with simple technology and a few big modern firms. For the past 10 years, XColonia has pursued an easy ISI policy, focusing on the development of consumer goods industry. Currently, XColonia

True, false or uncertain? Justify your response to the following statements.

Suppose that economic base of The City is experiencing a change in technology. Suppose that the dominant local industry, which produces something needed by all other local industries, used to display increasing returns to scale. The new technology reduces the average cost of production (given the current level of production) and displays constant returns to scale.

a) Would this change in technology affect the equilibrium size of the city?

b) Would the profit earned by local companies in other industries in equilibrium increase, decrease or stay the same because of the change in technology in the dominant industry?

AGRI 215 Lecture : Famly Farms vs. Industrial Farms

Document Summary

Get access

Related Documents

AGRI 215 Lecture Notes - Bla Bla Bla, Production Quota, Import Quota

ENSC 315 Lecture 18: Food Trade

ANSC 1001 Lecture Notes - Lecture 1: Gamma Globulin, Hazard Analysis And Critical Control Points, Colostrum

Related Questions