Summary
Summary Economics of Agribusiness AEP
- Course
- Institution
Including figures and graphs for visible explanation
[Show more]
Seller
Follow
marijnedankaart
Content preview
Economics of AgribusinessLecture 1
Agriculture and horticulture – industries producing agricultural and horticultural products.
There are no unique definitions.
Agri-complex/ Agribusiness:
- Based on domestically produced raw products.
- Based on domestically produced and imported raw products.
Net and Gross Domestic Product GDP – national sum of value added
National income – GDP corrected for net income earned abroad.
Share of agriculture in GDP decreases because:
1. Differentiation (dividing production process vertically) versus integration (opposite).
2. Specialization (dividing production processes horizontally) versus diversification
(opposite).
3. Relatively high productivity increases in agriculture.
Law of Engel: with more income smaller increase in food consumption.
Employment is: source of income and taxes (source of government income)
Export balance = export – imports.
o Is often seen as a sign of competitiveness.
Greenhouse effect: carbon dioxide, nitrous oxide and methane.
Acidification: nitrogen oxides, sulphur dioxide, ammonia.
Eutrophication: nitrogen, phosphorus
Lecture 2 Refresher calculus
Linear function:
Quadratic function:
Natural logarithmic function:
Rate of change of y with respect to x;
,First order derivative: measures the slope of a function
Lim = means that becomes very small
Second order derivative: measures the curvature of a function – the extent to which a
function is increasing or decreasing.
Differentiation rules:
Power-function rule:
Sum difference rule:
Product rule:
Quotient rule:
Chain rule:
Partial differentiation: in case a function depends on more than one variable:
Partial derivative with respect to x1 holding x2 constant:
Elasticity of y with respect to x:
Elasticity = the percentage change in variable y if variable x changes with 1%
Indefinite integral: where c is an arbitrary constant of integration
Definite integral: the area under a curve between two points
, Convex:
Concave:
Lagrange
Subject to:
First order conditions:
Optimum:
Lecture 4
Firm: organization that transforms inputs into outputs
Output: grown or manufactured commodities and services
Input: factor of production – resources used in production like labor, capital goods, energy
and materials.
o Variable – quantity can be adjusted in short run
o Quasi-fixed – quantity fixed in short run but can be adjusted in long run.
Economies of scale
o Division of labor or specialization
o Indivisibilities (sharing machinery)
Diseconomies of scale – if you hire a lot of people you also need someone to supervise.
Supervisors tend to be expensive. So, at some point you may spend more on management
instead of production.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marijnedankaart. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.42. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
59804 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now