"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the long run in the corn market, what is TRUE if the production of ethanol increases?
A) Individual corn farmers will make zero economic profit in the long run.
B) Individual corn farmers will make an economic profit in the long run.
C) Individual corn farmers will incur an economic loss in the long run, but they will still produce.
D) Individual corn farmers will incur an economic loss in the long run and will shut down.
Correct Answer:
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