The cost of production may depend on both the total quantity produced and the attribute(s) for which selection occurs. For example, the identification of genes that convey pest resistance will save on the costs of pesticides employed.3 Perhaps the most straightforward example of cost-saving genetic improvements is an increase in yield per plant. If a genetically improved plant can produce more grain, for example, per unit area planted than would a traditional variety, less land area will be required to produce the same total volume of grain.

Let us suppose now that the measure of the attribute of interest in the variety chosen for commercial propagation is 6. Let the cost of growing a quantity q\ of a "type 6\ variety" be C(q\, d\). Then the welfare to be realized from growing improved crops would be

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