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Agricultural Economist: In our region, the new drought-resistant wheat variety produces the exact same yield per acre as traditional varieties. However, in the three years since all regional farmers switched to this new variety, their average net income has decreased. Since the yields have remained consistent, cultivating the new drought-resistant wheat variety must involve higher production costs per acre than cultivating traditional varieties.
The statement 'The market price for wheat has not decreased significantly over the past three years' functions as a necessary assumption of the economist's argument.
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