## Draw a line diagram illustrating the capital-labor decision once a desired level of output has been determined. Show how the desired levels of capital and labour will change if rent becomes relatively cheaper than wages. Show how the diagram changes if a higher level of output is desired.

1. The In-Chapter questions in Chapter 1 Agri-economy. Take a screenshot of your answers and paste them in front of the exercise answers for Chapter 1. (1%) Answer the following Agri-economy exercise questions.

A. Draw a line diagram illustrating the capital-labor decision once a desired level of output has been determined. Show how the desired levels of capital and labour will change if rent becomes relatively cheaper than wages. Show how the diagram changes if a higher level of output is desired.

B. Draw a line diagram illustrating the risk-return frontier. State the axiom that follows from the upward slope of the line. Why is the line called a “frontier”? What is the implication of the risk-return frontier flattening out as it moves from left to right?

C. Draw a line diagram to illustrate how reducing output below what would be provided in a competitive market situation can increase profits to a monopoly.

D. Draw a line diagram to show reaction functions for two firms operating in an oligopolistic market with products that differ mostly due to branding.

E. Briefly describe the four types of business structures that can be used to organize agribusinesses and farms. List the similarities and differences of the structures. Notes on Exercise 1: The exercise is to be completed in Microsoft Word. Use “Insert, Shapes” to draw the line diagrams. You can use a table to answer question 4.

2. The In-chapter questions in Chapter 2 Budget. Take a screenshot of your answers and paste them in front of the exercise answers for Chapter 2. (1%) Answer the following Budget exercise questions.

A. Using three linked Microsoft Excel worksheets within a single Excel file, construct the Wheat Budget, Wheat Forecast, and Wheat Projected Cash Flow Statement exactly as shown in this chapter. Data is entered only in the Wheat Budget tab. All of the entries for the Wheat Forecast and Wheat Projected Cash Flow are linked to the Wheat Budget to ensure that any changes to the data will flow through the other worksheets correctly.

3. The In-chapter questions in Chapter 3 Margin. Take a screenshot of your answers and paste them in front of the exercise answers for Chapter 1. (1%) Answer the following Margin exercise questions.

A. Put together a Microsoft Excel worksheet like the one shown in the e-textbook with a screen shot. Find the futures prices on the Chicago Mercantile Exchange website for futures markets which are about four months ahead (i.e. as close to four months ahead as possible since there are not necessarily futures contracts for every month of the year). These include the futures contracts for lean hogs, corn, soymeal, and currency. We’re assuming that we can defer paying for the corn and soybeans until four months ahead and that we’ll get paid for the hogs right away upon selling them then. Calculate the current hog margin over feed.

4. The In-chapter questions in Chapter 4 Risk and Return. Take a screen shot of your answers and paste them in front of the exercise answers for Chapter 4. (1%) Answer the following Risk and Return exercise questions.

A. Put together an Excel worksheet and solver to find the proportions of crops B and C to include in a two-crop portfolio to minimize risk subject to a minimum acceptable portfolio return. Use the annual returns over 10 years for crop B which are given in the illustrated Excel worksheet. For the ten years of annual returns for crop C use 10, 16, 5, 16, -7, -18, -14, -2, 16, and 8. Specify 2.69 as the minimum acceptable portfolio return.

5. The In-chapter questions in Chapter 3 Efficiency. Take a screenshot of your answers and paste them in front of the exercise answers for Chapter 5. (1%) Answer the following Efficiency exercise questions.

A. Set up a Microsoft Excel sheet and solver to solve for the least cost feed ration that meets the nutritional requirements of the pigs and optimizes rate of growth and feed conversion ratio. Use the nutrient profiles for the ingredients and nutrient requirements for the pigs as shown in the tables above. For prices use 140 for wheat, 230 for corn, 180 for barley, 330 for soymeal, 1450 for premix, and 1800 for lysine.

6. The In-chapter questions in Chapter 6 Pivot Tables. Take a screen shot of your answers and paste them in front of the exercise answers for Chapter 6. (1%) Answer the following Pivot Table exercise questions.

A. Repeat the Pivot Table process described but this time create a pivot table for Mean of Crop Buyers and Price.

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