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How would each of the following affect the Canadian market supply curve for corn?
a) a new high-yielding strain of corn is discovered.
b) The price of fertilizer falls.
c) The government offers corn farmers a subsidy of $1/bushel
Question derived from Principles of Microeconomics, Frank, Bernanke, Osberg, Cross, Maclean, 4th Canadian Edition, Chapter 5, and Problem Question #6.
Illustrate what is the total number of wells which maximizes the sum of the profits of both firms.
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