If a Food Label Says "Organic" And/or Displays the USDA

question 45

Multiple Choice

If a food label says "Organic" and/or displays the USDA Organic seal, then the food

• A) contains less than 70 percent organic ingredients.
• B) is composed entirely of organic ingredients.
• C) contains at least 70 percent organic ingredients.
• D) contains at least 95 percent organic ingredients.

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Definitions:

Elastic Segment

refers to a section of the demand curve where consumers are relatively responsive to price changes, indicating that the price elasticity of demand is greater than one.

Total Revenue

The overall amount of money generated by a firm from its sales activities, calculated as the unit price times the quantity of goods sold.

Natural Monopolies

Industries where a single firm can supply a product or service to an entire market at a lower cost than any potential competitor, often due to economies of scale.

Extensive Economies of Scale

Refers to reductions in per-unit cost as the size of a firm or its level of production increases.