Global climate change models frequently suggest that some


Global climate change models frequently suggest that some areas will experience changes in the levels of expected rainfall. Assume that for this Alabama farm, these cli- mate models estimate that less rainfall will occur such that the water demand for each of the crops is going to increase by 50% as more irrigation water is needed. Assuming that farm can still obtain 220,000 m3 of irrigation water what is the maximum profit from the farm when Fertilizer A is used and not used? Provide the selling price for the use of Fertilizer A given this situation.

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Microeconomics: Global climate change models frequently suggest that some
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