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Under the current law (heavily favored by the current governor), Kansas flower growers are protected from foreign competition. However, this situation may change if the
Under the current law (heavily favored by the current governor), Kansas flower growers are protected from foreign competition. However, this situation may change if the current governor is not reelected for another term. The other candidate is known as a strong proponent of free trade, and removing all restrictions on imports is the first item on his agenda. If this happens, then Debbie would have to compete with flower growers from Latin America and Asia, and the annual demand for her flowers to be p=0.5- Q/100,000 Debbie estimates the chances of the current governor being reelected at 60% (thus she thinks there is a 40% chance a change in governance will occur). Unfortunately, she has to make output decisions (buy bulbs and plant flowers) before the election results become known. c. Derive the expression for Debbie's expected marginal revenue as a function of quantity
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