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MICROECONOMICS

Please read all the following questions carefully and give your answers in concise and clear manner. Support your answers with relevant arguments.

A Research team of a University in Indonesia has recently launched a superior rice variety.  One leading feature of the new variety is its ability to increase the production yield by 50  percents per each hectare of the cultivated land. Explain how the innovation of the food sector

would affect the farmers’ total revenue. Also, explain the impact of various innovations of the  food sector on the welfare of farmers and consumers.


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