1. Farmers are often heard to complain about the high cost of machinery, labor, and fertilizer, suggesting...

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1. Farmers are often heard to complain about the high cost of machinery, labor, and fertilizer, suggesting that these costs drive down their profit rate. Does it follow that, if, for example, the price of fertilizer fell by 10 percent, farming (a highly competitive industry with low barriers to entry) would be more profitable? Explain.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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