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Assume that the demand for corn is very inelastic. Would corn producers benefit if they all destroyed one-half of their corn before selling their corn to the market? How about Farmer Joe who destroys half of his corn?

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Solution Summary

This solution explains if corn producers would benefit if they all destroyed one-half of their corm before selling their corn to the market, assuming that the demand for corn is very inelastic. I also discuss how Farmer Joe would be at an advantage or disadvantage from doing so.

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There really wouldn't be a long-run benefit to destroying half of the corn before selling their corn to the market. This would mean that they could only sell half of their stock, which means they would ...

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