Asked by
Muhammad Nadir
on Dec 12, 2024
Verified
Andre, a wheat farmer, is deciding whether or not to add fertilizer to his crops. If he adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, Andre should add fertilizer if it costs less than
A) $12.50 per pound.
B) $20 per pound.
C) $80 per pound.
D) $100 per pound.
Marginal Analysis
The examination of the costs and benefits of a small (marginal) change in the production of goods or services.
Wheat Farmer
An individual or entity engaged in the cultivation of wheat crops for consumption or sale.
Fertilizer
A chemical or natural substance added to soil to increase its fertility and enhance plant growth.
- Understand the significance of marginal analysis within the context of economic decision-making.
- Comprehend the principle of marginal benefits and marginal costs in decision-making processes.
Verified Answer
CS
Learning Objectives
- Understand the significance of marginal analysis within the context of economic decision-making.
- Comprehend the principle of marginal benefits and marginal costs in decision-making processes.