MANAGERIAL ECONOMICS AND GLOBALIZATION

Managerial Economics and Globalization

Managerial Economics and Globalization

This paper examines two cases of demand and concepts as applied to the equilibrium price of corn and ethanol.

Case I

In the United States and other countries, corn is the main feedstock for ethanol production. It is more expensive to convert corn into sugar, because sugar bound in the long starch molecules. These carbohydrates must be broken in order to release the sugar will be converted into alcohol. Thus, researchers in the United States make every effort to discover how to reduce the cost of production of corn-based ethanol (www.card.iastate.edu).

The problem ...