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Nostrana [21]
2 years ago
7

Because better weather makes farmland more productive, farmland in regions with good weather conditions is more expensive than f

armland in regions with bad weather con- ditions. Over time, however, as advances in technology have made all farmland more productive, the price of farmland (adjusted for overall inflation) has fallen. Use the concept of elasticity to explain why productivity and farmland prices are positively related across space but negatively related over time.
Business
1 answer:
Natasha2012 [34]2 years ago
6 0

Answer:

The price of farmland is actually very stable, although it has slightly decreased in the last few years. But the decrease is not because farmland is more or less productive, but because the price of crops decreased a lot in the last 4 years. Do to president's Trump trade wars, the demand for US crops fell dramatically. This hurt farmers a lot, not because the price of their land decreased, but because their revenues collapsed. A farm is just like any other business, if the cash flows decrease by 30 or 40%, it is normal that the price of the business will decrease.

Actually the price of farmland didn't decrease as much as their cash flows. Each farmer probably lost at least 30% of their total revenues, but the price of the land only decreased by 0.8% on average. This happens because the supply of land is extremely inelastic. You cannot just make more farmland, it doesn't work that way.

As productivity increases, the price of farmland increases also. But on the long run, as the prices and productivity increases, new technologies increase productivity even more, diminishing the amount of farmland needed to produce the same output. Farmland productivity has increased a lot in the past decades, which has increased total food production. The problem is that as more food is supplied, its price goes down. This results in prices of farmland decreasing over time due to technological break troughs.

This only happens in some countries like the US, Canada, Brazil, Argentina, and a few others where farmland is extremely abundant and the population per square mile is very low. In other places, e.g. south east Asia, where people are packed like sardines, the price of land hasn't stop rising and will continue to rise because the demand is much higher than the supply.

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timurjin [86]

Answer:

high

Explanation:

the most popular time of year at a resort, hotel, or tourist attraction, when prices are highest

8 0
2 years ago
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In studies of seed production, why is it important to assign plots of land to either the control group or treatment group at ran
yulyashka [42]
The answer to this question is:  <span>d. it decreases the likelihood that plots that receive a particular treatment share other characteristics that might influence seed production
It is almost impossible to find out exact nutrition composition that exist within a soil. (which will play a huge factor in seed productin). So, to make the data more reliable, it is important to randomly assign plots of land as either the control group or the group that receive special treatment and grow the seed separately.</span>
7 0
3 years ago
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the fol
jolli1 [7]

Answer:

Date       General Journal                                Debit       Credit

Dec 31    Supplies expenses                           $2,300

               (1,650+3,800-3150)

                      Supplies                                                       $2,300

               (To record the supplies used during the period)

Dec 31     Insurance expenses                         $1,650

                      Prepaid expenses                                        $1,650

                (To record the insurance expired for December)

Dec 31      Salaries expenses                            $15,300

                       Salaries payable                                          $15,300

                (To record the unpaid salaries)

Dec 31        Deferred revenue                            $1,150

                   (3450/3 months)

                          Rent revenue                                             $1,150

                   (To record the revenue earned during the period)

7 0
3 years ago
You have saved​ $120,000 for your child to attend college. If it is in an account earning an annual rate of​ 8%, how much can yo
harkovskaia [24]

Answer:

I will take $36,230.5 to pay for the education of child.

Explanation:

Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.

We will use following formula to calculate the annual payments

P = r ( PV ) /  [ 1 - ( 1+ r )^-n ]

where

PV = amount of investment = $120,000

r = rate of return = 8%

n = number of period = 4 years

P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]

P = 36,230.5

3 0
3 years ago
Peters Manufacturing Company has the following data at June 30, 2019:
nignag [31]

Answer:

Gross Profit                      $ 74,000

<u>Cost of Goods sold                                   $ 506,000</u>

Explanation:

Peters Manufacturing Company

Income Statement

June 30, 2019

<u>Sales                                                 $580,000</u>

Total manufacturing costs 430,000

Add Work in process inventory, June 1 18,100

Cost of Goods Available for Manufacturing  548,100

Less Work in process inventory, June 30 30,400

Cost Of Goods Manufactured  517,700

Add Finished goods inventory, June 1 43,500

Cost Of Goods Available for Sale  561,200

Less Finished goods inventory, June 30 55,200

<u>Cost of Goods sold                                   $ 506,000</u>

Gross Profit                      $ 74,000

5 0
2 years ago
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