AGR 130 final

John Deere, Monsanto and/or DuPont would be agribusinesses in which of the following food industry sectors?
Farm Service
Hershey, ConAgra, and Kellogg would all be agribusinesses in which of the following Food Industry sectors?
Processors
A family farm must be different than a corporate farm.
Fals
The average American farmer produces enough to currently feed approximately how many individuals in the world?
200
Concentration in agricultural industries is often measured using what method?
The percent of the total market held by the top four firms
A firm in an industry with little concentration may not have any market power.
False
How many UPC (universal product codes) does the average large modern supermarket have?
40,000
The food marketing system are all of the activities and services between what two groups?
Producers to consumers
Which of the following marketing utilities is created by storage activities?
Time
Why do food marketing firms produce utility?
Profit
Approximately what portion of personal income would each person spend in the U.S. on food if the total food bill (excluding alcohol) were split between all people?
10%
What is the largest component of the food marketing bill?
Labor
How does the food marketing bill relate to the total food bill in the United States?
Food marketing is about 81% of the food bill
Craig decided to purchase a set of fencing materials from Amazon.com after comparing prices to his local supply store. Craig is therefore making his fencing purchase from a market.
True
Morgan is a grain merchandiser and is purchasing corn. Morgan cannot tell the difference when inspecting Farmer Cob’s corn and Farmer Silk’s corn. For this reason Morgan decides to purchase from whomever will sell at the lowest price.

Which of the following perfectly competitive market characteristics is occurring in this example?

Homogenous product
Kyle produces chickens in Kentucky for Tyson. While he produces under contract, Kyle is not able to negotiate with Tyson the prices at which he will be able to sell his birds. Tyson names a price and Kyle accepts. Is Kyle producing in a perfectly competitive market?
No; both the buyer and seller have to be price takers
Demand describes a relationship, not a quantity.
True
A change in price (of any particular good) can cause a change in both supply and in quantity supplied for that good.
False
A shift in demand is represented by which of the following?
A new demand curve
Which of the following is not a condition of a perfectly competitive market?
Ability to influence market outcomes
Economic profit includes the value of all factors of production regardless of whether they are paid for or not.
True
Fixed inputs are a variable that managers can most easily control in the short run.
Fals
Which of the following describes a relationship between the units of a variable input and the units of production, ceteris paribus?
Production Function
Marginal productivity can be zero.
True
If a producer increases the amount of fertilizer by 25% and receives an output increase of 30% (all else held constant), the producer is experiencing what kind of returns?
increasing returns to scale
In a factor-product model what is about the only thing that a manager can control?
Output quantity
Which of the following costs will remain constant regardless of an increase in production?
Total Fixed Costs
Where would a firm’s rational stage of production start?
Minimum point of the average variable cost curve
Which of the following cost curves should be considered when trying to determine a firm’s shutdown level?
Average variable cost
The satisfaction that consumers receive from the goods or services they consume is known by which of the following?
Utility
Market demand can be found from aggregating all consumers individual demand curves for a given product, at given price levels.
True
If Phelps (a random college student) purchases more of good B, relative to good A, because the price of good B is now more attractive to him as compared to the price of good A, Phelps is experiencing which of the following concepts?
Law of Demand – Substitution Effect
Utility can be EASILY measured through an objective, ordinal scale (ex: 10 = best, 1=worst).
False
Which of the following is NOT a reason that consumers will purchase goods?
All of the Above are reasons consumers purchase goods
At the end of the year John buys a new planter although his old planter was still working well. Early next year he worries that he has spent too much money on an item because he may not have as good a crop as in past years. Which of the following is a true statement about John’s behavior?
John’s behavior was rational because he would not have made the purchase if his satisfaction wasn’t greater than the cost
The objective of a consumer is the same of the producer which is to maximize satisfaction.
False
A consumer will purchase a product as long as the satisfaction of the purchase is more than the opportunity cost of the consumption.
True