A Farm Co-Op Has Over 40,500 Gallons of Fertilizer/herbicide Available

question 48

Multiple Choice

A farm co-op has over 40,500 gallons of fertilizer/herbicide available to use when planting corn and soybeans. The farm co-op's maximum profit for using 40,500 gallons of fertilizer/herbicide is $315,002 and the maximum profit for 40,508 gallons is $315,030. What is the profit value of each additional gallon of fertilizer/herbicide (that is, the shadow price of a gallon of fertilizer/herbicide) ? Round your answer to the nearest cent if necessary.

• A)$4.00
• B)$3.50
• C)$3.11
• D)$28.00
• E)$14.00

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Definitions:

Agency Relationship

A legal relationship where one party (the agent) acts on behalf of another party (the principal), with the authority to create legal obligations.

Authority End

signifies the termination or conclusion of the legal or official power held by an individual or entity.

Vicarious Liability

Refers to the situation where one party is held partly responsible for the unlawful actions of a third party.

Scope of Employment

The range of activities and duties an employee is expected to perform as part of their job, as defined by their contract or role description.