1. EQ #2 AGEC 105 - Capps (4 pts) September 12, 2011
Suppose that Trent Lewis, a rice farmer near Beaumont, Texas, garners $650,000 in gross farm income and incurs production expenses of $300,000. In addition, suppose that the CPI was Further, suppose that Trent Lewis has assets totaling $17 million and liabilities totaling $9 million.
What is the real net farm income of Trent Lewis?
The equity for this rice farmer is $___________ million.
Another term for equity is _______________.
The portion of food expenditures associated with the activities of firms beyond the farm gate is known as the _______________.
(1 pt)
(1/2 pt)

2. Bottles of Coca-Cola (CC)
Consider the following chart.
Assuming total utility is defined as U =2*W*CC,
(1/2 pt) (a) Which bundle has the highest level of total utility?
(1/2 pt) (b) Which bundle has the lowest level of total utility?
Bundle
Number of Wings (W)
Bottles of Coca-Cola (CC) A 3 B 6 4 C 9 2 D 12 1