The Agriculture Research Center of a country (a government organization) introduced a new and innovative irrigation technique that would ensure that water usage declined by almost 40 percent. Part of this would be achieved by reducing wastage of water caused by field inundations. This would not only be more sustainable in the long run, but would also benefit farmers. Samira Fernandes, one of the leading researchers at the Center, believes that this innovation would make farming more efficient since a majority of the farmers, if not all, implemented it. Bob Johnson, her colleague, however felt that farmers might be reluctant to use the new irrigation technique. Which of the following, if true, would support Samira's view? A. Switching costs involved in adopting this new technology are low. B. Farmers in neighboring countries have usually been reluctant to use new techniques. C. Traditional farming practices have served farmers well in the past. D. The opportunity cost of the investment in this new irrigation technique was high. E. Network externality related to the existing mode of irrigation is high.

The Agriculture Research Center of a country (a government organization) introduced a new and innovative irrigation technique that would ensure that water usage declined by almost 40 percent. Part of this would be achieved by reducing wastage of water caused by field inundations. This would not only be more sustainable in the long run, but would also benefit farmers. Samira Fernandes, one of the leading researchers at the Center, believes that this innovation would make farming more efficient since a majority of the farmers, if not all, implemented it. Bob Johnson, her colleague, however felt that farmers might be reluctant to use the new irrigation technique. Which of the following, if true, would support Samira's view? A. Switching costs involved in adopting this new technology are low. B. Farmers in neighboring countries have usually been reluctant to use new techniques. C. Traditional farming practices have served farmers well in the past. D. The opportunity cost of the investment in this new irrigation technique was high. E. Network externality related to the existing mode of irrigation is high.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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