Government programs that compensate farmers for not planting crops on all their land : hurt farmers by lowering their total revenue and hurt consumers by causing shortages of some food items. farmers by cutting costs, which consumers by lowering food prices. farmers by increasing total revenue in the market but hurt consumers by raising food prices. farmers directly since they receive government payments but have no real effects on consumers.

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?