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Unformatted text preview: Such a farm yields $20,000 worth of cotton each year. The total nonlabor cost of producing the cotton is $4,000 a year. The local government decides to provide free fertilizer that would triple cotton yields. a. If the price of cotton is unaffected, how would this program affect the income of tenant farmers in the short run? In the long run? b. Who would benefit from the program in the long run? How much would they gain each year?...
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- Spring '08