Under what circumstances is the landlord incorrect


Suppose Mr. Greengenes, a farmer and genetic engineer, develops a new method for growing corn that decreases the cost of growing corn by $300 per acre. Greengene's landlord rejoices, saying, "according to the leftover principle (i.e., profit equals rent), you will pay me $300 more in rent." Under what circumstances is the landlord incorrect?

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Microeconomics: Under what circumstances is the landlord incorrect
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