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    ECON 130 Tutorial 4

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    mik.surti757
    The document discusses marginal cost concepts and how poor weather conditions can affect the marginal cost of producing vegetables for agricultural producers. It notes that poor weather can increase expenses and reduce crop availability, quality and productivity in both the short and long run. Larger effects are expected if the poor weather is related to sustained climate change rather than just seasonal conditions.

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    ECON 130 Tutorial 4

    Uploaded by

    mik.surti757
    60 views3 pages
    The document discusses marginal cost concepts and how poor weather conditions can affect the marginal cost of producing vegetables for agricultural producers. It notes that poor weather can increase expenses and reduce crop availability, quality and productivity in both the short and long run. Larger effects are expected if the poor weather is related to sustained climate change rather than just seasonal conditions.

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    ECON 130 tutorial 4

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    The document discusses marginal cost concepts and how poor weather conditions can affect the marginal cost of producing vegetables for agricultural producers. It notes that poor weather can increase expenses and reduce crop availability, quality and productivity in both the short and long run. Larger effects are expected if the poor weather is related to sustained climate change rather than just seasonal conditions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    60 views3 pages

    ECON 130 Tutorial 4

    Uploaded by

    mik.surti757
    The document discusses marginal cost concepts and how poor weather conditions can affect the marginal cost of producing vegetables for agricultural producers. It notes that poor weather can increase expenses and reduce crop availability, quality and productivity in both the short and long run. Larger effects are expected if the poor weather is related to sustained climate change rather than just seasonal conditions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Part 1

    MC1:

    c) $1.00

    MC2

    b) MC=w/MPL

    MC 3

    a) In the short run, the firm’s choice of output will be at a level where marginal cost equals
    marginal revenue.

    Part 2

    Q1

    b) qk = (Y1 / 4qL^0.5)
    d) i) The cost minimising production plan is when firms are maximising their productivity
    using the lowest cost amount of inputs to produce a certain level of output.

    The least cost production technique is illustrated when the isoquant production curve is
    tangent to the isocost curve. This occurs when: qL = 1200 qk = 600

    ii)

    (20x1200) + (40x600) = $48000

    At this point, the firm is using their entire budget of $48000.

    Q2

    Producers should be advised to move away from using methyl bromide. This is because it is
    an extremely toxic pesticide that has been highly linked to a larger number of health and
    environmental concerns. High exposure can cause a spectrum of health problems, including
    neurological damage, reproductive problems, and respiratory issues. It is also a very potent
    greenhouse gas that can contribute largely to climate change, including damaging the ozone
    layer. There are also many other environmentally friendly and safer alternatives to methyl
    bromide, including biological controls, crop rotation, and other pest minimising strategies.

    Producers have many incentives to avoid using methyl bromide. For instance there are
    many laws and regulations that prevent people from using methyl bromide, so continued use
    could result in legal and financial penalties for the concerned individuals involved in New
    Zealand. Consumers are becoming more aware and concerned about the environmental
    damage and health impact of using methyl bromide, therefore those producers that can
    adopt more sustainable and safer practices may also have a competitive advantage in
    markets for goods and services. And lastly, using more sustainable practices can help
    maintain the health and productivity of land for producers which can benefit producers in the
    long term.

    Q3

    Poor weather conditions affecting agricultural producers will definitely affect the marginal
    cost of producing vegetables. This is because it can reduce the availability and the quality of
    the crops. For example, in relation to the vegetables crops that got destroyed as result of the
    turbulent weather that hit New Zealand in June 2022, agricultural producers may need to
    invest in additional irrigation and other agricultural resources in order to keep the crops alive,
    due to the reduced crop availability. As a result, this will cause an increase in marginal costs
    for agricultural producers.

    Poor weather conditions can have both a short term and long term impact on agricultural
    producers and crops. In the short term, poor weather conditions can lead to immediate crop
    damage, reducing the availability of crops and causing an increase in expenses for
    agricultural producers. In the long term, it can cause detrimental impacts to the overall health
    and productivity of the land. This can lead to an everlasting effect on crop harvesting and
    production.
    If the poor weather conditions affecting agricultural producers were related to sustained
    climate change as opposed to seasonal poor weather conditions, there would be larger and
    more severe long term effects. This is because climate change can cause more consistent
    and frequent severe weather events to occur, such as floods, hurricanes, droughts etc,
    which can cause detrimental effects on crop harvesting and agricultural production. Climate
    change can also cause larger temperature changes and rainfall patterns, which can impact
    the types of crops that can be grown in different regions.

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