1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLEGan [10]
3 years ago
8

Explain how a Target price for farm crops is an example of a price floor.​

Business
1 answer:
12345 [234]3 years ago
8 0

Answer: A target price for farm crops is an example of price floor because it’s fixed ahead of harvests with the interest of farmers in mind.

Explanation: A quick definition of both concepts would be of help. A price floor is usually fixed by government legislation and it ensures that the price of a commodity or service does not fall below a certain minimum. In the case of farm crops, a floor price makes sure that the farmers are guaranteed a level of profit in case there is poor harvest for any reason whatsoever. The price floor must be fixed above the equilibrium price for this to be effective.

A target price is an expectation of the future price of commodities or services, and hence prices are fixed ahead of the harvest in the case of farm crops. This is so because as explained earlier, future conditions might change and become unfavorable, therefore making the current market price unprofitable for farmers. If for example, a sack of potatoes currently sells for $30, the government may fix the price floor ahead of the harvest season at $45 per sack. This implies that after harvesting farmers can still sell at $30. However if the harvest turns out to be bad perhaps due to natural disasters, pests or fungal attacks, etc, then the farmers can go ahead and sell at $45 and possibly higher. No farmer is allowed to sell below $45 (since that is the ‘floor’). That way, farmers would still have some profit guaranteed and would be encouraged to remain in the farming business.

You might be interested in
Which of the following forms of co-ownership, historically used for apartment buildings, is not considered a form of true direct
barxatty [35]

Answer:

The correct answer is letter "A": Cooperative.

Explanation:

Cooperatives or co-ops are not real state ownerships but imply being in charge of a property under a lease agreement. Similar to condominiums, individuals can live in an apartment that belongs to an owner that in co-ops are companies. The tenant purchases stocks of the company becoming a stakeholder and in return, the company provides the tenant an apartment with a lease agreement for the possession of the property.

7 0
3 years ago
Why do people hold bonds rather than larger savings or checking accounts
svp [43]
Under what circumstances might they change their portfolios, moving their funds out of bonds into bank accounts? In general, people place their funds in those investments which provide them the highest returns.
4 0
4 years ago
Updating accounts receivable is part of which transaction cycle?
Lilit [14]

Updating accounts receivable is part of revenue cycle.

The procedure used by healthcare systems in the United States and around the world to track patient income, from their initial appointment or encounter with the healthcare system to their final payment of debt, is known as revenue cycle management (RCM). It is a typical component of healthcare management.

What is revenue cycle?

  • The phrase "all administrative and clinical functions that contribute to the capture, management, and collection of patient service revenue" can be used to describe the revenue cycle.
  • It is a cycle that explains and illustrates a patient's life cycle (and the ensuing income and payments) during a typical medical interaction, from admission (registration) through final payment (or adjustment off of accounts receivables).
  • After a patient makes an appointment, the revenue cycle starts, and it ends when the healthcare provider has taken all of the payments. Errors in revenue cycle management may result in payments to the healthcare provider being delayed or nonexistent altogether.
  • Healthcare providers can outsource their revenue cycle management to businesses that handle this complex process with specialized agents and proprietary technologies to manage healthcare provider revenue cycles because the revenue cycle process is complex and subject to regulatory supervision.

To learn more about revenue cycle visithttps://brainly.com/question/13167295

#SPJ4

7 0
1 year ago
​U(X,Y)equals=20Xplus+80Yminus−Upper X squaredX2minus−2Upper Y squaredY2 where X is his consumption of CDs with a price of ​$11
ankoles [38]

Answer:

The number of CDs = 111.36

The number of movie videos = 242.72

N/B: I choose not to round up the answers.

Explanation:

The method used is the Lagrangian method. Basically, the optimization problem we are trying to solve is  the utility function u(x,y) = 20x+80y -x^2 -y^2

subject to the constraint

11x + 22y = 6565.

So the optimization problem(Lagrangian) is

\Delta = 20x + 80y -x^2 -y^2- \lambda(11x+22y-6565),

where \lambda is a constant called the Lagrange multiplier.

To find the optimal consumption, we need to maximize the Lagrangian with respect to the variables x,y,\lambda. This we do by differentiating \Delta with respect to each variable and then equate to 0.

\Delta_x : 11\lambda = 20 - 2x ........................(1) \\\Delta_y: 11\lambda = 40 -y .........................(2) \\\Delta_\lambda = 11x + 22y = 6565............................(3) \\

Equate (1) and (2), to get y = 20+2x and substitute into (3) to get x = 111.36. Substituting x = 111.36 into 20+2x to get the corresponding value of y.

7 0
3 years ago
Federal Reserve Banks directly affect the national economy by:
liubo4ka [24]
Increasing and decreasing money supply
3 0
3 years ago
Read 2 more answers
Other questions:
  • ​________ is used to describe how changes in price affect a​ consumer's purchasing​ power, and​ ________ is used to describe how
    13·2 answers
  • A person who files a lawsuit because they have a legal injury is called what ?
    6·1 answer
  • Discuss the conditions and developments that affected the cattle industry during the last half of the nineteenth century.
    13·1 answer
  • What is the point called where the supply curve and the demand curve meet?
    11·1 answer
  • If common equity financing is 60% of the optimal capital structure and the existing limit of internal equity is $500,000. Solve
    15·1 answer
  • The days sales in recievable for baker sales is 35 the days sales in receivables for xanadu company is 25 this suggest xanadu is
    8·2 answers
  • Milner Company is working on two job orders. The job cost sheets show the following.
    11·1 answer
  • A company has a fiscal year-end of December 31: (1) on October 1, $32,000 was paid for a one-year fire insurance policy; (2) on
    10·1 answer
  • trini started a new office job and her supervisor trained her for the position. however, her supervisor was not an adequate trai
    9·1 answer
  • Because ems personnel are often exposed to both acute and chronic stressors, ________ management may be helpful to cope with on-
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!