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How did increased productivity on farms affect the competitive nature of markets?

How did increased productivity on farms affect the competitive nature of markets?. Industrialization Unit. Directions. Each of you were given a farm to run. Follow the directions in the class discussion and fill out your worksheet.

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How did increased productivity on farms affect the competitive nature of markets?

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  1. How did increased productivity on farms affect the competitive nature of markets? Industrialization Unit

  2. Directions • Each of you were given a farm to run. • Follow the directions in the class discussion and fill out your worksheet. • Our Goal = to find out how increased productivity affected the farming market.

  3. The Overview • Answer the first two questions on your worksheet. • What type of farm do you have? • What resources do you have/need?

  4. Government and Transportation • Public Policies • During industrialization the Government took a Laissez faire approach, meaning they did NOT regulate business in any way • Transportation • All farms in the area use trains to transport their wheat to market • What is your transportation cost?

  5. Season 1: Amount of $ made • Price of wheat this year is $15/bushel • Total bushels produced(bushel per acre x Acre) x $15 = Total amount of money made

  6. Season 1: Cost Cost per acre x Acre + Transportation cost x Bushel produced + any Loan payment you may need to make = Total Cost

  7. Season 1: Profit Amount of money made – Total Cost = Profit How much did you make in season 1?

  8. Season 2 • New Technology • A new threshing machine was just invented and is taking the wheat industry by storm • It increases productivity to full production (every acre of your farm can be used now).

  9. Season 2 • Large Farm owners = buy the machine outright • Lay of some laborers (reduce cost per acre by $10) • Med. Farm owners =Loan $100 per season • Lay off some laborers (reduce cost per acre by $10) • Sm. Farm owners = Unable to receive a loan cannot buy the machine. Cannot reduce cost per acre

  10. Season 2 • Change in Transportation • A larger railroad company just bought the one you used to transport your wheat to market • The new company raised the price and now charges $5 per bushel to transport your wheat to market

  11. Season 2: Amount of $ made • Price of wheat this year is $10/bushel • Total bushels produced x $10 = Total amount of money made • Why did the price of wheat drop?

  12. Season 2 Total Cost Cost per acre (remember to reduce if you bought a machine) x Acre + Transportation cost (increased) x Bushel produced + any Loan payment you may need to make = Total Cost

  13. Season 2 Profit • Amount of money made – Total Cost = Profit • How much did you make in season 2? • Did it increase or decrease? Why?

  14. Inferences and Generalizations • Inferences: (3-5 sentences) • What do you think will happen to your farm in the next few seasons? WHY? • Generalizations: (3-5 sentences) • Explain how increases in productivity affected the farming market

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