The Development of a New, More Productive Hybrid Wheat Would

question 45

Multiple Choice

The development of a new, more productive hybrid wheat would tend to decrease the total revenue of wheat farmers because:

• A)the demand for wheat tends to be elastic
• B)the supply of wheat tends to be elastic
• C)the demand for wheat tends to be inelastic
• D)the supply of wheat tends to be inelastic

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Definitions:

Total Fixed Costs

Total fixed costs are the sum of all costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance premiums.

Activity Base

A measure used to assign costs to activities that incur costs, often used in the context of activity-based costing.

Managerial Accountant

A professional who focuses on providing financial information within a company to assist in decision making and financial planning.

Operations

Refers to the daily activities involved in running a business, which can include production, marketing, and product development.