In my paper about climate change and grape growersrevenue profit in th...

In my paper about climate change and grape growersâ€™ revenue/profit in the European Union (see PPT...

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Economics

In my paper about climate change and grape growersâ€™revenue/profit in the European Union (see PPT file) I specify alog-linear equation and find that
ln (%) = 0.221 âˆ™ -./0 âˆ’ 0.006 âˆ™ -./0! + â‹¯ , where Temp ismeasured in oC.â€¨a) Based on these coefficients, calculate theprofit maximizing temperature (which may be slightly different fromwhat is provided in the Table due to rounding). Provide a precisenumber with 3 decimals!
b) Now assume I had used a linear equation and had found thesame coefficients, that is
%=0.221âˆ™-./0âˆ’ 0.006âˆ™-./0! +â‹¯.
What is the profit maximizing temperature now?
c) Based of the original log-linear equation ln(%) = 0.221 âˆ™-./0 âˆ’ 0.006 âˆ™ -./0! + â‹¯, what is the profit % if a plot of landexperiences a (growing season) temperature of 24oC. What is theprofit if temperatures increase to 26oC? What is the percentagedecrease in profits?

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3.9 Ratings (429 Votes)

a In 0221Temp 0006Temp2Hence is never equal to zeroTo maximize Profit we need ddTemp 0Differentiating the equation wrt Temp on both sides and ignoringterms with powers 3 and See Answer

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