They arise because goods can sometimes be found only in certain parts of the world. A famous example of this was historically silk which was only found in China and everyone had to pay what the Chinese manufacturers said. It was good for Chinese economy because their merchants and silk manufacturers were rich, and in return the consumers were satisfied because they had the original high quality silk coming straight from China which ensured quality.
The monthly groceries and the clothing purchases qualify as variable expenses. Variable expenses are expenses that can change in relation to your product or service usage such as fuel consumption<span>. The monthly groceries and the clothing purchases expense can change. It depends on how you spend your money.</span>
Answer:
a) the cost of production of Greengene's falls by $300 or more
b) there is no change in the cost of production
Explanation:
a) The leftover principle states that land rent equals the excess of total revenue over nonland costs. Mr. Greengene initial rent is already fixed at $500. The new method of growing cost of corn is now $300 per hectare. Lauren will continue to apply the leftover principle when collecting rent as long as the cost of production of Greengene's falls by $300 or more.
b) If Lauren decides to increase the rent to $800 when there is no change in the cost of production, she stands to lose Mr. Greengene as he will simply look for another land to rent from someone else. Therefore, Greengene's rent will be unchanged if there is no change in the cost of production.
I would probably say 14.5 hopefully I’m not wrong
