A farmer is deciding whether or not to add fertilizer to his or her crops. If the farmer adds 1 pound of fertilizer per acre, the value of the resulting crops rises from $80 to $100 per acre. According to marginal analysis, the farmer 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.
Answer: B
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Which of the following could cause a recession?
A. A decline in aggregate demand B. A decline in unemployment C. An increase in aggregate supply D. An increase in government spending
A point inside the production possibilities curve illustrates that resources are not being used as efficiently as possible.
Answer the following statement true (T) or false (F)
If a binding price floor is imposed on the market for eBooks, then
a. the demand for eBooks will decrease. b. the supply of eBooks will increase. c. a surplus of eBooks will develop. d. All of the above are correct.
Which types of industries are hit hardest by a recession? Explain.
What will be an ideal response?