Course Description
The economics of the agricultural processing and marketing sectors. Economics of assembly line production; efficient plant size, location, and operation; the economics of commodity storage; the economics of the marketing sector; spatial competition; and price and quantity competition among firms with market power.
Athena Title
Econ of Ag Process and Market
Pre or Corequisite
AAEC 3580-3580L or ECON 4010
Semester Course Offered
Offered fall
Grading System
A - F (Traditional)
Course Objectives
This course covers a variety of topics related to agricultural marketing. Agricultural marketing is defined as all the activities that occur between when the farmer sells his products and when you eat food made using the farmer's products as ingredients. We are not going to deal with advertising and selling techniques, but with the economics involved in the many events that happen between harvesting and snacking. We will also cover lots of real world events and situations that involve the economics of processing and/or marketing.
Topical Outline
Economics of Processing Plants cost functions for assembly lines product transformation and pricing optimal plant size optimal number and location of plants choice of crop by location relative to processing plants Economics of the Marketing Sector transfer and marketing costs derived supply and demand schedules two region trade analysis with transportation costs with tariffs with exchange rates Economics of Storage optimal timing for marketing of nonrenewable product marketing a renewable, put occasional product Price Discrimination discrimination by product transformation discrimination by buyer characteristic Imperfect Competition and Game Theory basic game theory concepts and solutions competition in prices and quantities competition with leaders and followers spatial competition in two dimensions
Syllabus