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?

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



Answer :

GinnyAnswer

Final answer:

Using the new fertilizer will likely increase the farm's marginal benefits for each piece of land.


Explanation:

By using the new fertilizer that costs 20 percent more to produce but increases crop production by 25 percent, the farm's marginal benefits for each piece of land will likely increase. This is because the additional cost of production is outweighed by the higher crop yields, enhancing the benefits per piece of land.


Learn more about impact of using new fertilizer on farm economics here:

https://brainly.com/question/12341284


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