The government intends to reduce the market price by 20% per bag as requested by the farmers. Consequently, it will buy the excess output if any at the market equilibrium price. Alternatively a new plant costing 20 million with a life time of five years, producing 5million worth of fertilizer annually can be constructed. Assuming a 10% market rate of return, what should the county government do?
Qd=36-1/3p
Qs= -9+1/2p

Question

The government intends to reduce the market price by 20% per bag as requested by the farmers. Consequently, it will buy the excess output if any at the market equilibrium price. Alternatively a new plant costing 20 million with a life time of five years, producing 5million worth of fertilizer annually can be constructed. Assuming a 10% market rate of return, what should the county government do?
         Qd=36-1/3p
               Qs= -9+1/2p

anonymous · Answer

give me medal plz

mehek14 · Answer

@hunter.glover You will not get a medal unless you earn it