Recall Application 4, "Fertilizer and Crop Yields" to Answer the Following

question 12

Multiple Choice

Recall Application 4, "Fertilizer and Crop Yields" to answer the following questions:
-Table 2.1 in the application showed that when the bags of nitrogen applied went from 0 to 1 to 2 to 3 to 4, crop yield went from 85 to 120 to 135 to 144 to 147 bushels per acre. The principles of diminishing return began to take effect on the _ _ bag of fertilizer per acre.

• A) 1st
• B) 2nd
• C) 3rd
• D) 4th

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Definitions:

Consumption Bundle

A combination of goods and services that a consumer chooses to consume given their budget constraints.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or utility.

Consumption

The process by which goods and services are used up by consumers.

Indifference Curves

A graphical representation showing combinations of goods or services among which a consumer is indifferent, depicting equal levels of utility.