Question: Robert Green repeatedly and painstakingly applied herbicides to kill weeds
Robert Green repeatedly and painstakingly applied herbicides to kill weeds that would harm his sugar beet crops in 2007. However, in 2008, he planted beets genetically engineered to withstand Monsanto’s Roundup herbicide. Roundup destroys weeds but leaves the crop unharmed, thereby saving a farmer thousands of dollars in tractor fuel and labor (Andrew Pollack, “Round 2 for Biotech Beets,” New York Times, November 27, 2007). However, this policy is risky. In the past when beet breeders announced they were going to use Roundup- resistant seeds, sugar- using food companies like Hershey and Mars objected, fearing consumer resistance. Now, though, sensing that consumer concerns have subsided, many processors have cleared their growers to plant the Roundup- resistant beets. A Kellogg spokeswoman said her company was willing to use such beets, but Hershey and Mars declined to comment. Thus, a farmer like Mr. Green faces risks by switching to Roundup Ready beets. Use a decision tree to illustrate the analysis that a farmer in this situation needs to do.
Relevant QuestionsIn Q& A 14.4, advertising increases the probability of high demand to 80%. If all the other information in the Q& A stays the same, what is the minimum probability of high demand resulting from advertising such that Gautam ...The state of California set up its own earthquake insurance program for homeowners. The rates vary by ZIP Code, depending on the proximity of the nearest fault line. However, critics claim that the people who set the rates ...Many buyers value high-quality used cars at the full-information market price of p1 and lemons at p2. A limited number of potential sellers value high-quality cars at v1 ≤ p1 and lemons at v2 ≤ p2. Everyone is risk ...The state of California set up its own earthquake insurance program. Because the state agency in charge has few staff members, it pays private insurance carriers to handle claims for earthquake damage. These insurance firms ...A health insurance company tries to prevent the moral hazard of “excessive” dentist visits by limiting the visits per person per year to a specific number. How does such a restriction affect moral hazard and risk ...
Post your question