Farmers Can Use Their Land to Grow Soy Beans or Corn

question 101

Multiple Choice

Farmers can use their land to grow soy beans or corn. If the price of corn rises,

• A) the supply of soybeans increases.
• B) the supply of corn increases and the corn supply curve shifts rightward.
• C) the supply of corn increases.
• D) the supply of soybeans decreases and the soybean supply curve shifts leftward.

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Definitions:

Static Budgets

Fixed budgets that do not change in response to variations in business activity levels.

Manufacturing Overhead

Indirect costs related to the production process, such as utilities, maintenance, and salaried personnel, not directly attributable to specific units of output.

Variable

An element or factor that can change or vary, impacting the outcome of mathematical models, experiments, or financial forecasts.

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.