Farms in the USA are getting larger. One dairy farm in the state of Indiana has over 38000 cows. Farms in the USA compete with farms in both developed and developing countries. The value of the farms’ exports of milk appears in the trade in goods section of the current account of the USA’s balance of payments.
(a) Identify two examples of capital goods that may be used by a farm.

1. Milking machine

2. Fodder system

Explanation:

Capital goods are defined as durable goods that the business invest in to serve the manufacturing, producing process of products or services - serve the production purpose.

The purpose of the farm US is to produce milk to export.

So that to enact it, they need fodder system to assure the amount of good food for their cows - the main assets. Fodder systems are essential for any farm, particularly ones with huge amount of cattle.

In addition, they needs the milking machine to serve the process of producing milk. Invest in the advanced milking machine would help them get advantage over the other competitors. As with the big amount of cows, the fee for human employees would be costly compare to machine. Besides, technology could also assure the productivity.

answer; no individual buyer or seller has any significant impact on the market price;