Why might a bumper crop detrimental for overall farm revenue

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The notion of elasticity is essential whenever the multi- plicative product of two variables involves a trade-off. (Thus, we have already appealed to price elasticity to maximize revenue given the trade-off between price and output.) With this in mind, consider the following examples.

a. Why might a bumper crop (for instance, a 10 percent increase in a crop's output) be detrimental for overall farm revenue?

b. Court and legal reforms (to speed the process of litigation and lower its cost) will encourage more disputants to use the court system. Under what circumstances, could this cause an increase in total litigation spending?

c. Despite technological advances in fishing methods and more numerous fishing boats, total catches of many fish species have declined over time. Explain.

d. Predict the impact on smoking behavior (and the incidence of lung disease) as more and more producers market low-tar and low-nicotine cigarettes.

Reference no: EM13881056

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