Bailey Norwood, Jayson Lusk's Agricultural Marketing and Price Analysis PDF

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By Bailey Norwood, Jayson Lusk

ISBN-10: 0132211211

ISBN-13: 9780132211215

As clean as its tone is the leading edge method this book takes to financial idea and agricultural advertising innovations. This ebook deals versatility via overlaying a variety of issues that come with either conventional monetary thought and organizational economics. beginner readers will gravitate to the inviting writing kind and colourful examples.  All in one resource, readers will locate modern therapy of economics and value research, agricultural costs and markets, agribusiness advertising options and more! 

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Someone who argues that a life is priceless might be tempted to say yes. But, if we spent $20 billion on saving 20 lives by eliminating pesticides, this means $20 billion less to spend on other things. How else might that $20 billion be spent? What is the opportunity cost of this money? Some estimates suggest that a government regulation that mandated tests for radon could save about 15,000 lives in the United States for less than $20 billion. So, we could spend $20 billion by eliminating pesticides and save 20 lives, or we could spend about $20 billion to regulate radon testing and save 15,000 lives.

If you are a die-hard Beatles fan you may be tempted to say the value is infinite. Suppose the bass guitar is being auctioned off and the current bid is $1,000. If you bid $1,100, I know your maximum willingness-to-pay is more than $1,100. The bid keeps going up and is now at $3,300. You keep bidding, so I know you value it more than $3,300. Now suppose the bids reach $5,500, and you stop bidding. I now know your maximum willingness-to-pay for the bass guitar is between $3,300 and $5,500. That, from an economist’s point-of-view, is how much you value the guitar.

You like the Dave Matthews Band much more than The Rolling Stones and are willing to pay up to $150 for a ticket (but no more). Suppose that if you go to the Dave Matthews Band concert you would pay $100 for a ticket—so you extract $50 ($150 Ϫ $100) of benefits. Of all the things you could do this night, you would rather go to one of the two concerts. How much does it cost you to go to The Rolling Stones concert? You might want to say nothing, because the ticket was free, but you would be wrong.

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Agricultural Marketing and Price Analysis by Bailey Norwood, Jayson Lusk

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