Suppose That the Available Quantity of a Certain Type of Farmland

question 284

Multiple Choice

Suppose that the available quantity of a certain type of farmland is 400,000 acres, and the demand for this land is given in the table. If landowners were taxed at a rate of $150 per acre for their land, what would be the economic rent on this land after taxes, and how many acres would be rented?

• A)$50 and 400,000 acres
• B)$400 and 50,000 acres
• C)$150 and 400,000 acres
• D)$250 and 50,000 acres

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Definitions:

Line of Credit

A flexible loan from a bank or financial institution that offers a borrower a maximum amount of money they can borrow over a specified time period.

Receivable Financing

A financing arrangement where a business uses its accounts receivable as collateral for a loan, improving cash flow.

Commercial Banks

are financial institutions that offer a wide range of services such as accepting deposits, providing business and personal loans, and other financial products and services to the public.

Financial Track Records

Documentation or history that shows the financial performance and health of a company or individual over time.