Author Profile

Dr. Derek G. Brewin is the Dean of Research at the Faculty of Business and Law at Curtin University. He is an agricultural and development economist with a strong track record in interdisciplinary research and development, often working with international organisations and collaborating across diverse geographical contexts. His work focuses on agribusiness and supply chain development and economics, behavioural economics, rural transformation and development, productivity and technical efficiency analysis, risk management and decision-making, technology adoption and farmer behaviour under risk and uncertainty, climate change impacts and adaptation, and gender, poverty and food security. Dr. Derek has led and managed several research and development projects with multidisciplinary teams in Australia and internationally. His work spans more than 20 countries in the Asia-Pacific region and Africa, including Australia, India, Nepal, Bangladesh, Pakistan, Bhutan, China, Mongolia, Indonesia, Thailand, Vietnam, Malaysia, the Philippines, Kenya, South Africa, Malawi, and Tanzania, amongst others. He has been a consultant for the Food and Agriculture Organization of the United Nations (UN-FAO), UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP), the International Rice Research Institute (IRRI), the Asian Development Bank (ADB), the Australian Centre for International Agricultural Research (ACIAR) and the WA Government. His work typically addresses development challenges at the interface of agriculture, food security, economics, and inclusive growth. Prior to joining Curtin University, he was Deputy Director of the Centre for Agricultural Economics and Development and Associate Professor in the Department of Agricultural and Resource Economics at the University of Western Australia. He also previously held various academic and leadership roles at Curtin University, including Deputy Dean of Research and Development and Director of Higher Degree by Research at Curtin Business School. Dr. Derek holds a Bachelor of Science in Agricultural Economics (honours, cum laude) from the University of the Philippines at Los Baños, a Masters degree in Economics and PhD in Agricultural Economics from the University of New England.

About The Book

Agricultural economics applies economic theory to optimize production, distribution, and consumption in the agricultural sector, focusing on managing scarce resources like land, labor, and capital to maximize profit. Key principles include supply and demand analysis, marginal cost/benefit decision-making, production economics, and risk management, which help address issues like food security and price volatility. Since land, labor, and capital are limited, farmers must determine the most efficient allocation to maximize production and income. Production Economics & Theory uses concepts like the Law of Variable Proportions (production functions) to determine how to produce efficiently. Supply and Demand analyses market mechanisms, price determination, and the behavior of consumers and producers regarding food and agricultural goods. Marginal Analysis decisions are made at the margin (marginal cost vs. marginal benefit) to optimize input usage and maximize profit.

Table of Contents

Preface
1.
INTRODUCTION TO AGRICULTURAL ECONOMICS..........................1
1.1 Why Study Agricultural Economics?
1.2 Scope Of Economics
1.3 Definition Of Economics
1.4 Alternative Economic Systems
1.5 Definition Of Agricultural Economics
1.6 Graphical Analysis
1.7 Understanding Agricultural Economics
1.8 Challenges In Agricultural Economics
1.9 Future Trends In Agricultural Economics
2.
MARKET PRICE DETERMINATION........................................................27
2.1 Markets
2.2 Demand And Supply
2.3 Price Determination
2.4 Changes In Supply And Demand
3.
FIRM THE PRODUCTION UNIT..............................................................42
3.1 Perfectly Competitive Markets
3.2 The Perfectly Competitive Firm
3.3 Production
3.4 The Production Function
4.
COSTS AND OPTIMAL OUTPUT ..........................................................54
4.1 Environment Of The Firm
4.2 Optimal Output Level
5.
SUPPLY, MARKET AND DEMAND..........................................................70
5.1 Supply Curve Of The Firm
5.2 Market Supply
5.3 Market Adjustments
5.4 Profit-Maximizing Input Use
6.
IMPERFECT COMPETITION AND
GOVERNMENT REGULATION................................................................83
6.1 Market Structure
6.2 Perfect Competition
6.3 Pure Monopoly
6.4 Monopolistic Competition
6.5 Oligopoly
6.6 Government Regulation
7.
THEORY OF CONSUMER BEHAVIOR.................................................105
7.1 The Law Of Demand
7.2 Real Income And Substitution Effects
7.3 Market Demand And Individual Demand
7.4 The Market Demand Function
8.
ELASTICITY..............................................................................................116
8.1 Elasticity Of Demand
8.2 Cross-Price Elasticity
8.3 Income Elasticity
8.4 Elasticity Of Supply
8.5 Price Discrimination
9.
MONEY AND
FINANCIAL INTERMEDIARIES.............................................................132
9.1 What Is Money?
9.2 What Backs Money?
9.3 The Money “Supply”
9.4 Financial Markets
10.
THE CIRCULAR FLOW OF INCOME...................................................150
10.1 Final Goods
10.2 The Circular Flow
10.3 Gross Domestic Product And National Income
10.4 The Circular Flow By Economic Sector
10.5 The Role Of Financial Intermediaries
11.
MONETARY POLICY ..............................................................................175
11.1 The Money Supply And Economic Activity
11.2 Implementing Monetary Policy
11.3 Summary Of Monetary Policy
12.
FISCAL POLICY ......................................................................................192
12.1 Debt And Deficits
12.2 The Classical School
12.3 The Keynesian Revolution
13.
INTERNATIONAL TRADE......................................................................206
13.1 Changing U.S. Trade Patterns
13.2 The Importance Of World Trade To U.S. Agriculture
13.3 Why Do Nations Trade?
13.4 Gains From Trade
13.5 Restraints To Trade
13.6 Foreign Exchange Markets
13.7 Trade Agreements
14.
AGRICULTURAL POLICY......................................................................230
14.1 The Perfect Food System
14.2 The Economic Environment Of Agricultural Policy Issues
14.3 Conservation Reserve Program
14.4 U.S. Farm Policy In A Global Context
15.
FOOD MARKETING................................................................................246
15.1 Food Marketing Defined
15.2 Food Marketing Creates Utility
15.3 The Food Bill
15.4 The Food Marketing Bill
15.5 By Commodity
15.6 Food Market Levels
15.7 Market Functions
15.8 Marketing Margins
15.9 Food Market Regulations
16.
FARM SERVICE SECTOR........................................................................272
16.1 Purchased Inputs
16.2 Insurance
16.3 Credit
16.4 Farm Labor
Bibliography...............................................................................................286
Index...........................................................................................................310