Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 22, Problem 6CQ
Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the producers in the corn production industry were price takers, what would happen to the following?
- a. the price of corn
- b. the profitability of corn farmers who quickly adopt the new technology
- c. the profitability of corn farmers who are slow to adopt the new technology
- d. the price of soybeans, a substitute product for corn
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Chapter 22 Solutions
Economics: Private and Public Choice (MindTap Course List)
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