above for Figure 11-5. Suppose that the Hoang family, like many farmers in Vietnam, incur a transactions cost equivalent to 20% per ton of rice if they sell in regional markets. Why? Because of the high costs associated with water irrigation in rice production and of transporting rice from farms across bad rural roads. When the Hoang household produces and sells rice, its net loss in profit relative (i.e., net change in producer surplus) is equal to? $950 O -$1,053 $5,225 O $3,000 $1,880 Figure 11-5 Price ($ per ton) $288 Sa (village) $180 Regional price $162 $144 $36 Da (village) Quantity (tons of rice) 54 63 72

above for Figure 11-5. Suppose that the Hoang family, like many farmers in Vietnam, incur a transactions cost equivalent to 20% per ton of rice if they sell in regional markets. Why? Because of the high costs associated with water irrigation in rice production and of transporting rice from farms across bad rural roads. When the Hoang household produces and sells rice, its net loss in profit relative (i.e., net change in producer surplus) is equal to? $950 O -$1,053 $5,225 O $3,000 $1,880 Figure 11-5 Price ($ per ton) $288 Sa (village) $180 Regional price $162 $144 $36 Da (village) Quantity (tons of rice) 54 63 72

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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