Assume that the farmers know that their revenues would increase if each would take a certain amount of acreage out of production. An agreement to do so
A) would not be made because the farmers have no incentive to enter into it.
B) would not be made because it would contradict the assumption that farmers are profit maximizers.
C) probably would not be adhered to, if made, because it would be disadvantageous for the farmers as a group.
D) probably would not last, if made, because each farmer would have an incentive to break it.
D
Economics
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The way that a change in price determines whether or not consumers buy goods
a. elasticity of demand b. substitution effect c. law of demand d. complement e. substitute
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