Recall the Application About the Use of Fertilizer and Its

question 22

Multiple Choice

Recall the Application about the use of fertilizer and its impact on crop yields to answer the following question(s) . The table is taken from this Application.
Fertilizer and Corn Yield

-Refer to the table above. After applying the second bag of fertilizer, the farmer experienced

• A) increasing returns.
• B) diminishing returns.
• C) constant returns.
• D) negative returns.

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Definitions:

Price Ratio

The ratio of the prices of two goods or services, often used in the context of trade or barter.

Elasticity of Demand

A measure of how responsive the quantity demanded is to a change in price, indicating how a product's demand will fluctuate with pricing changes.

Marginal Rate

Often refers to the incremental increase in cost or benefit associated with a one-unit change in an economic activity.

Substitution

The economic principle where consumers replace more expensive items with less costly alternatives, or when firms swap higher-priced inputs with cheaper resources.