A Farm Is Able to Produce 10,000 Bushels of Peanuts

question 81

Multiple Choice

A farm is able to produce 10,000 bushels of peanuts per season on 10 acres. Assume it adds one more acre and is able to produce 12,000 bushels per season. The marginal product of the additional acre of land for this farm is:

• A) 10,000 bushels per acre per year.
• B) 1,200 bushels per acre per year.
• C) 2,000 bushels per acre per year.
• D) 12,000 bushels per acre per year.

---

Definitions:

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Average Fixed Cost

The fixed cost per unit produced, calculated by dividing total fixed costs by the quantity of output produced.

Marginal Cost

The charge for generating one more unit of a good or service.