If Soybean Farmers Know That the Demand for Soybeans Is

question 221

Multiple Choice

If soybean farmers know that the demand for soybeans is price inelastic,in order to increase their total revenues they should

• A) use more fertilizers and weed killers to increase their yields.
• B) plant additional acres to increase their output.
• C) reduce the number of acres they plant to decrease their output.
• D) Both a and b are correct.

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Definitions:

Delivery Speed

The rate at which a company can fulfill customer orders from the point of order placement to delivery, directly impacting customer satisfaction.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, and deterioration or obsolescence.

Shipping Cost

The expense incurred to transport goods from one place to another, typically paid by the seller or the buyer.

Factor Weighting Technique

A method used in decision-making that assigns different weights to various factors or criteria according to their importance or relevance.