do you think the prices of wheat were higher or lower prior to 1998? Why? 1 answer below »

The formation of urban products enjoy wheat is one of the few examples of a entirely competitive activity. In this inquiry, we irritate results from a consider released by the U.S. Department of Agriculture about wheat formation in the United States in 1998.

a. The medium inconstant require per acre planted delay wheat was $107 per acre. Assuming a bear of 50 bushels per acre, rate the medium inconstant require per bushel of wheat.

b. The medium expense of wheat common by a peasant in 1998 was $2.65 per bushel. Do you conceive the medium farm would own exited the activity in the short run? Explain.

c. Delay a bear of 50 bushels of wheat per acre, the medium entirety require per farm was $3.80 per bushel. The harvested acreage for rye (a form of wheat) in the United States subvert from 418,000 acres in 1998 to 274,000 in 2006. Using the instruction on expenses and requires near and in magnitude a and b, clear-up why this faculty own happened.

d. Using the over instruction, do you conceive the expenses of wheat were conspicuous or inferior former to 1998? Why?