contestada

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 benefits for each piece of land will decrease.
B. The farm's marginal benefits for each piece of land will increase.
C. The farm's opportunity cost for each piece of land will decrease.
D. The farm's opportunity cost for each piece of land will increase,

Respuesta :

21macedoh7

Answer: The farm’s marginal benefits for each piece of land will increase

Trust me

'Marginal benefits' are described as the additional or extra benefit that a consumer gets on escalating a unit in a specific good or service.

B). In the given situation, the new fertilizer will cause 'the farm's marginal benefits for each piece of land to increase.'

  • The situation provided displays that although the new fertilizer costs more, it allows the farmer to maximize his production up to 25% every year.
  • This implies that the 'marginal benefit' produced by the farm would face an increase because the quantity of the goods sold would lead to an increase in the supply of goods in the market.
  • This would allow the consumers to receive additional satisfaction on buying an extra unit of the good.

Thus, option B is the correct answer.

Learn more about 'marginal benefits' here:

brainly.com/question/15583202

Ver imagen JackelineCasarez

Otras preguntas