Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent increase
Question:
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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If the producers in the corn production industry are price takers meaning they have no influence over the market price and must accept the market pric...View the full answer
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Related Book For 
Economics Private And Public Choice
ISBN: 9780357133996
17th Edition
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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