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What effect might new technology have on production? A farmer purchases a new type of...
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The new type of seeds are better for the farmer as the requirement for pesticides is reduced by two-thirds. And the cost of the seeds is not slightly more than what is being used by the farmer right now.
The new technology will benefit the farmer. The cost of pesticides can be substantial for a farmer. As the farmer only spends one third the amount that is being spent on pesticide right now, it is a large saving. The cost incurred in adopting the new technology is very small as the new type of seeds are more expensive than those being used right now by a very small amount.
(The assumption made here is that there is no loss in the yield when the seeds in use right now are replaced by those created using the new technology.)
Posted by justaguide on June 8, 2013 at 3:14 PM (Answer #1)
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