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2. Consider a flexible land lease where the base rent is $160/ acre with the agreement that the lessor will pay a bonus of $10
2. Consider a flexible land lease where the base rent is $160/ acre with the agreement that the lessor will pay a bonus of $10 /acre for each $0.25 /bushel that corn price is above $4.50 /bushel and the lease price will decline $5/ acre for each $0.10 /bushel that corn price is below $4/ bushel. a. What is the lease cost (in \$/acre) if the corn price is $6/ bushel? b. What is the lease cost (in $/ acre) if com price is $3.40/ bushel
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