Some Food Costs May Rise in the Future as a Consequence

question 64

Multiple Choice

Some food costs may rise in the future as a consequence of the increased use of which food-based fuel?

• A) Ethanol
• B) Gasoline
• C) Oil
• D) Coal

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Definitions:

Costs

Costs refer to the expenses incurred in the production of goods or services, including materials, labor, and overhead.

Marginal Product

The growth in productivity that occurs when an extra unit of input is added, with all other inputs remaining the same.

Profit

The financial benefit realized when revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Total Output

The total amount of goods and services produced within an economy at a given overall price level in a given time period.