Suppose that the development of a new, improved seed allows all corn farmers in the United States to increase their yields per acre. Since the demand for corn is relatively inelastic, the price of corn in a perfectly competitive market is likely to
a. not change, but farm revenues will fall.
b. not change, but farm revenues will rise.
c. increase, and farm revenues will fall.
d. decrease, and farm revenues will fall.
d. decrease, and farm revenues will fall.
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What is the principal-agent problem as applied to corporations?
What will be an ideal response?
Refer to Figure 2-8. If Vidalia chooses to produce 80 dozen roses, how many orchids can it produce to maximize production?
A) 24 dozen orchids B) 48 dozen orchids C) 60 dozen orchids D) 74 dozen orchids
What are the primary causes of armed conflict in developing countries and what increases the risk factor for these conflicts?
What will be an ideal response?
Which statement is true?
A. Middle-aged Americans have been saving at a higher rate than in the past. B. Home equity loans have been a source of funds to finance consumer spending. C. The Japanese savings rate is nearly twice the American saving rate. D. None of these statements are true.