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If a Farmer Faces a Drop in the Rent He

Question 1

Multiple Choice

If a farmer faces a drop in the rent he must pay for his land, he will react to this by:


A) dropping the price of his crop.
B) trying to move to a point on the production function where he uses more land and less of other inputs.
C) substituting away from land to inputs with higher marginal products.
D) shifting to another part of the production function where the marginal product of land is higher.
E) increasing the price of his crop.

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