The corn basis in Nevada is about -$0.30/bu. The corn basis in Gilbert is about -$0.20/bu. Where should a corn farmer living in Ames, halfway between Nevada and Gilbert, ship his corn to make the most money?

A. Nevada.
B. Gilbert.
C. They both give the same return to the farmer if transportation to each destination costs the same.
D. None of the above.


Answer: B. Gilbert.

Economics

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