Which of the Following Statements About Agriculture in the U

question 37

Multiple Choice

Which of the following statements about agriculture in the U.S.is correct?

• A)From the 1950s to today,agricultural output has approximately doubled.
• B)Because technological improvements increase the supply of a product for which demand is inelastic,an individual farmer would be better off not adopting the new technology.
• C)Increasing the supply of agricultural products typically benefits consumers but harms farmers.
• D)Technological improvements typically increase both supply and revenue for individual farmers.

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Definitions:

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.

Economies of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread over more units of production.

Demand Pooling

A strategy used in supply chain management to reduce variability in demand by aggregating demand across different customers or markets.

Unavoidable Cost

Costs that cannot be eliminated or reduced in the short-term regardless of the level of production or the business activity.