Business, 18.08.2020 20:01, heavendl13

Stan, a soybean farmer, acts to prevent crop failure. The marginal benefit is represented by MB = 80 – A, where A is the number of precautions. The marginal cost of these precautions (e. g., soil preparation and pesticide and fertilizer use) is MC = 20 – 0.5A. Suppose the government offers Stan crop, does crop insurance affect the number of precautionary actions taken by Stan?

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Stan, a soybean farmer, acts to prevent crop failure. The marginal benefit is represented by MB = 80...