How Was the Adoption of New Farm Technology Both an Opportunity

question 25

Multiple Choice

How was the adoption of new farm technology both an opportunity and a threat for western farmers?

• A) New farm equipment made farmers more productive, but its high cost made them more economically vulnerable.
• B) If too many farmers adopted new equipment, overproduction could lead to falling prices and widespread farm failures.
• C) New equipment was too expensive for most farmers, making only a very few able to compete.
• D) Many new farm implements were unsuited for western farming, leading farmers to waste money on useless gadgets.

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Definitions:

Contribution Margin

It refers to the amount of revenue remaining after deducting variable costs, which can contribute to covering fixed costs and generating profit.

Operations

The day-to-day activities involved in running a business, focusing on creating and delivering products or services.

Fixed Manufacturing Overhead

Expenses related to production that remain constant, regardless of the production volume, such as maintenance of machinery and property taxes.

Deferred

A term referring to items or expenses that are not recognized immediately but postponed to a future date.