Brazil Attempts to Increase Agricultural Output by Putting More Amazon

question 6

Multiple Choice

Brazil attempts to increase agricultural output by putting more Amazon Rainforest land into cultivation for ________ and __________.

• A) Banana plantations and coffee production
• B) Palm oil production and sugarcane plantations
• C) Soybean production and cattle ranching
• D) Cattle ranching and palm oil production

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Marginal Cost

The added total cost resulting from the manufacture of one more unit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often represented as the area above the supply curve and below the equilibrium price.

Output Tax

A tax imposed based on the quantity of goods or services produced.