You Are a Farmer That Grows Corn

question 19

Essay

You are a farmer that grows corn. You are offered a genetically modified variety of corn that is 100 percent resistant to corn borers. You have to decide what proportion of your field you should plant in resistant corn versus a variety that is susceptible to corn borers. Explain why you might choose one of the following proportions of resistant to susceptible: 100:0, 90:10, 75:25, or 50:50.

Identify the factors that determine the optimal combination of resources for production in both short-term and long-term perspectives.

Recognize how purely competitive conditions in product and resource markets lead to efficient outcomes in terms of resource use and income distribution.

Understand the principles of resource pricing and its impact on income distribution.

Identify and explain the concept of marginal productivity and its role in income distribution and resource allocation.