| |
| |
List of boxes | |
| |
| |
List of figures | |
| |
| |
List of tables | |
| |
| |
List of plates | |
| |
| |
Preface | |
| |
| |
Acknowledgments | |
| |
| |
List of abbreviations | |
| |
| |
| |
Introduction to the economics of agriculture | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
Economics is important and interesting! | |
| |
| |
| |
What is economics, and what is it about? | |
| |
| |
| |
Scarcity | |
| |
| |
| |
The economic organization of society | |
| |
| |
| |
A model of an economy | |
| |
| |
| |
Trends in the agricultural economy | |
| |
| |
| |
Using graphs | |
| |
| |
| |
Absolute and relative prices | |
| |
| |
| |
Examples of graphs | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
The economics of production | |
| |
| |
Synopsis | |
| |
| |
| |
The production function | |
| |
| |
| |
Length of time: immediate run, short run, and long run | |
| |
| |
| |
Physical production relationships | |
| |
| |
| |
The Law of Diminishing Marginal Returns | |
| |
| |
| |
The three stages of production | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
The costs of production | |
| |
| |
Synopsis | |
| |
| |
| |
Profits | |
| |
| |
| |
Opportunity costs | |
| |
| |
| |
Costs and output | |
| |
| |
| |
Cost curve example: Vermont daily farmer | |
| |
| |
| |
Where do cost curves come from? | |
| |
| |
| |
Constant, decreasing, and increasing cost curves | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Profit maximization | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
Perfect competition | |
| |
| |
| |
The profit-maximizing level of input | |
| |
| |
| |
The profit-maximizing level of output | |
| |
| |
| |
Profits and losses, break even, and shutdown points | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Optimal input selection | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
The relationship between inputs | |
| |
| |
| |
Isoquants | |
| |
| |
| |
Relative prices | |
| |
| |
| |
Isoquant types | |
| |
| |
| |
Optimal input decisions | |
| |
| |
| |
Optimal responses to price changes | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Optimal output selection | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
The Production Possibilities Frontier (PPF) | |
| |
| |
| |
The Marginal Rate of Product Substitution (MRPS) | |
| |
| |
| |
The isorevenue line | |
| |
| |
| |
The optimal output combination | |
| |
| |
| |
Price changes and the optimal output combination | |
| |
| |
| |
Review of profit-maximization rules | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Consumer choices | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
Rational behavior | |
| |
| |
| |
Utility | |
| |
| |
| |
The Law of Diminishing Marginal Utility | |
| |
| |
| |
Indifference curves | |
| |
| |
| |
The marginal rate of substitution (MRS) | |
| |
| |
| |
The budget constraint | |
| |
| |
| |
Consumer equilibrium | |
| |
| |
| |
The demand for meat in Phoenix, Arizona | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Supply and demand | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
Supply | |
| |
| |
| |
The elasticity of supply | |
| |
| |
| |
Change in supply; change in quantity supplied | |
| |
| |
| |
Determinants of supply | |
| |
| |
| |
Demand | |
| |
| |
| |
The elasticity of demand | |
| |
| |
| |
Change in demand; change in quantity demanded | |
| |
| |
| |
Determinants of demand | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Markets | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
What is a market? | |
| |
| |
| |
Market equilibrium | |
| |
| |
| |
Comparative statics | |
| |
| |
| |
Price policies | |
| |
| |
| |
Mathematical models (optional) | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
The competitive firm | |
| |
| |
Synopsis | |
| |
| |
| |
Market structure | |
| |
| |
| |
Characteristics of perfect competition | |
| |
| |
| |
The perfectly competitive firm | |
| |
| |
| |
The efficiency of competitive industries | |
| |
| |
| |
Strategies for perfectly competitive firms | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Market power | |
| |
| |
Synopsis | |
| |
| |
| |
Market power | |
| |
| |
| |
Monopoly | |
| |
| |
| |
Monopolistic competition | |
| |
| |
| |
Oligopoly | |
| |
| |
| |
Is big necessarily bad? | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Agriculture and the global economy | |
| |
| |
Synopsis | |
| |
| |
| |
Gobalization and agriculture | |
| |
| |
| |
Interdependence and gains from trade | |
| |
| |
| |
Gains from trade example: Oklahoma beef and wheat | |
| |
| |
| |
The principle of comparative advantage | |
| |
| |
| |
Comparative advantage and trade | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
| |
Economics, agriculture, and the environment | |
| |
| |
Synopsis | |
| |
| |
| |
Introduction | |
| |
| |
| |
The tragedy of the commons | |
| |
| |
| |
Externality | |
| |
| |
| |
Private bargaining: Coase | |
| |
| |
| |
Summary | |
| |
| |
| |
Glossary | |
| |
| |
| |
Review questions | |
| |
| |
Glossary | |
| |
| |
Index | |