marketing the cotton is $4000/year. A local politi- cian whose motto is \"workin
ID: 1218659 • Letter: M
Question
marketing the cotton is $4000/year. A local politi- cian whose motto is "working people come first" ha promised that if he is elected, his administration wi fund fertilizer, irrigation, and marketing that wil triple cotton yields on tenant farms at no charge to tenant farmers. LO2, LO3, LO6 a. If the market price of cotton was unaffected by this policy and no new jobs were created in the this policy and no new jobs were created in tihe cotton-growing industry, how would the proje affect the incomes of tenant farmers in the sho run? in the long run? b. Who would reap the benefit of the scheme in t long run? How much would they gain each yea 8. You have a friend who is a potter. He holds a per- manent patent on an indestructible teacup whose sale generates $30 000/year more revenue thanExplanation / Answer
A patent is a right for a period of time so that no one else can make/use/sell an invention.
The potter earns $30,000 profit.
Interest rate is 20%
The market value of the patent the amount of money that needs to be invested today to earn a $30,000 interest in 1 year.
30000/ 0.2 = $150,000
Maket value = $150,000
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