Suppose the Cost of Insecticide (A Variable Input)decreases for Broccoli

question 136

Multiple Choice

Suppose the cost of insecticide (a variable input) decreases for broccoli farmers.In order to maximize profits,ceteris paribus,broccoli farmers should

• A)Decrease output.
• B)Keep output the same since the market price did not change.
• C)Increase output.
• D)Increase prices.

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Definitions:

FOB Shipping Point

FOB Shipping Point is a delivery term that means the buyer takes ownership and responsibility for the goods once they leave the seller's premises.

Damages

Monetary compensation claimed by a person or provided by a court as a remedy for a wrong or injury caused by another's act or default.

Goods

are tangible products or commodities that are produced or manufactured for sale.