QuestionJuly 2, 2025

Question 8 of 10 A farmer has developed a new type of fertilizer. This new fertilizer costs 20 percent more to produce than the old fertilizer but has better results:The same land now produces 25 percent more crops each year. Which statement best describes one way the farm will be affected by using this new fertilizer? A. The farm's marginal cost for fertilizer will increase. B. The farm's opportunity cost for using fertilizer will decrease. C. The farm's marginal cost for fertilizer will decrease. D. The farm's opportunity cost for using fertilizer will increase.

Question 8 of 10 A farmer has developed a new type of fertilizer. This new fertilizer costs 20 percent more to produce than the old fertilizer but has better results:The same land now produces 25 percent more crops each year. Which statement best describes one way the farm will be affected by using this new fertilizer? A. The farm's marginal cost for fertilizer will increase. B. The farm's opportunity cost for using fertilizer will decrease. C. The farm's marginal cost for fertilizer will decrease. D. The farm's opportunity cost for using fertilizer will increase.
Question 8 of 10
A farmer has developed a new type of fertilizer. This new fertilizer costs 20
percent more to produce than the old fertilizer but has better results:The
same land now produces 25 percent more crops each year.
Which statement best describes one way the farm will be affected by using
this new fertilizer?
A. The farm's marginal cost for fertilizer will increase.
B. The farm's opportunity cost for using fertilizer will decrease.
C. The farm's marginal cost for fertilizer will decrease.
D. The farm's opportunity cost for using fertilizer will increase.

Solution
4.4(239 votes)

Answer

A. The farm's marginal cost for fertilizer will increase. Explanation 1. Analyze Cost Increase The new fertilizer costs 20% more to produce, increasing the marginal cost for fertilizer. 2. Analyze Crop Yield Increase The new fertilizer increases crop yield by 25%, potentially offsetting increased costs. 3. Determine Marginal Cost Impact Despite better results, the direct production cost of fertilizer increases, affecting marginal cost.

Explanation

1. Analyze Cost Increase<br /> The new fertilizer costs 20% more to produce, increasing the marginal cost for fertilizer.<br /><br />2. Analyze Crop Yield Increase<br /> The new fertilizer increases crop yield by 25%, potentially offsetting increased costs.<br /><br />3. Determine Marginal Cost Impact<br /> Despite better results, the direct production cost of fertilizer increases, affecting marginal cost.
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