In Developed Countries, the Most Recent Increases in Agricultural Productivity

question 56

Multiple Choice

In developed countries, the most recent increases in agricultural productivity have come from

• A) Irrigation in arid areas
• B) Increased fertilization
• C) New crop varieties
• D) An increase in the land being used for agriculture
• E) Irrigation, increased fertilization, and new crop varieties

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Definitions:

Profit-maximizing Output

The level of production at which a firm can achieve the highest possible profit, determined by where marginal cost equals marginal revenue.

Resource Allocation

The process of distributing available resources among various competing needs or uses to maximize overall benefit.

MR = MC Output

The optimal production level for a firm where marginal revenue (MR) equals marginal cost (MC), used to maximize profit.

Profit Maximizing

The strategy or method of adapting manufacturing and sales processes to secure the maximum achievable profit.