A Farm Is Able to Produce 9,000 Pints of Strawberries

question 148

Multiple Choice

A farm is able to produce 9,000 pints of strawberries per season on 10 acres. It adds one more acre and is able to produce 12,000 pints per season. The marginal product of land for this farm is:

• A) 900 pints per acre per year.
• B) 1,000 pints per acre per year.
• C) 3,000 pints per acre per year.
• D) 12,000 pints per acre per year.

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Definitions:

Long Run Average Cost Curve

A graphical representation showing the lowest cost at which a firm can produce any given level of output in the long run, where all inputs are variable.

Decreasing Returns to Scale

A situation in which, as the scale of production increases, the output increases at a proportionally smaller rate, leading to increased average costs.

Long Run Average Cost Curve

A graphical representation showing the minimum average cost at which any output level can be produced in the long term when all inputs, including capital, are variable.

Increasing Returns to Scale

A situation in which a proportionate increase in all inputs leads to a greater proportional increase in output, indicating improved production efficiency.