Business, 09.04.2020 04:33 anthonycortez4993

Mr. Greengene grows corn on the land he rents from Lauren, initially at a price of $500 per hectare. Suppose Mr. Greengene develops a new method for growing corn that decreases the growing cost by $300 per hectare. Lauren rejoices, citing the leftover principle as she counts on collecting $800 in rent instead of $500.

a. Greengene's rent will increase by $300 per hectare if:

b. Greengene's rent will be unchanged if:

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Mr. Greengene grows corn on the land he rents from Lauren, initially at a price of $500 per hectare....

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