Final answer:
The new corn seed technology can result in cheaper and more manageable production for the farmer due to lowered pesticide requirements, improved profit margins, and potentially increased crop yields. Historically, similar technological advancements have shifted the supply curve to the right, meaning increased production at any given price, as witnessed during the Green Revolution.
Step-by-step explanation:
The adoption of a new type of corn seed that reduces the need for pesticides by two-thirds can have cheaper and more manageable production effects for the farmer. This is because the cost of production potentially decreases as the need for regular pesticide application is lessened, which can lead to a reduction in operational costs. Additionally, such biotechnology improvements in agriculture have historically contributed to increases in crop yields. The new seed, although slightly more expensive, could lead to a substantial reduction in pesticide expenses, overall improving the farmer’s profit margins.
When technological advancements like these occur, they often result in a shift of the supply curve to the right. This shift means that a larger quantity of corn can be produced at any given price, potentially lowering the cost of corn to consumers while increasing production efficiency. Such improvements echo the benefits observed during the Green Revolution, which saw a significant rise in agricultural output due to improved seed technologies.