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yuknam yuknam
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5 years ago
The figure below presents the marginal revenue that a farmer can obtain from water, and the marginal cost to the farmer to move the water to her land. There are two farmers with the same marginal revenue and marginal cost curves and there are 200 acre feet available to the two farmers. If the rights to use the water are sold in a competitive market, the equilibrium price of a right to use one acre foot would be ________.

Textbook 
Introduction to Agricultural Economics

Introduction to Agricultural Economics


Edition: 7th
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wrote...
5 years ago
$4 per acre feet (the difference between the MR and MC curves at 100 acre feet, which would be the quantity used by each farmer)
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