Answered

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?
OA. The farm's marginal cost for fertilizer will decrease.
B. The farm's marginal cost for fertilizer will increase.
OC. The farm's opportunity cost for using fertilizer will decrease.
OD. The farm's opportunity cost for using fertilizer will increase.



Answer :

sebikakarki28

Answer:

The correct answer is:

B. The farm's marginal cost for fertilizer will increase.

Since the new fertilizer costs 20 percent more to produce, the cost of fertilizer per unit will increase. Even though the new fertilizer leads to better crop yields, the increased cost of production will result in a higher marginal cost for fertilizer for the farm.