Answered

IDNLearn.com is committed to providing high-quality answers to your questions. Explore a wide array of topics and find reliable answers from our experienced community members.

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 decrease.
B. The farm's marginal cost for fertilizer will increase.
C. The farm's opportunity cost for using fertilizer will decrease.
D. The farm's opportunity cost for using fertilizer will increase.

Sagot :

Answer:

A

Step-by-step explanation:

Marginal cost is the change in total cost as a result of increasing output by one unit

Marginal cost  = Δcost / Δquantity

0.2 / 0.25 = 0.8

The marginal cost would decrease because the change in output is higher than the change in total cost

Marginal benefit would increase

Opportunity cost is the cost of the opportunity forgone when one alternative is chosen over other alternatives. There is no enough information given to determine the impact on opportunity cost

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com is committed to your satisfaction. Thank you for visiting, and see you next time for more helpful answers.