Current Agriculture, Food & Resource Issues
M. Doyon, C. Brodeur and J-P. Gervais
4 No attention must be devoted to the non-linear shape of the iso-line, given that prices of
the export contracts are irregularly spaced on the horizontal axis.
5 Using comparative static tools on the first-order condition of the maximization problem
defined in (1), it can be shown that the share of production quota held by producers is
increasing (decreasing) in marginal costs when absolute risk aversion decreases
(increases) with wealth.
130
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