Managers of Agribusiness Firms Can Substitute Inputs in the Production

question 24

Multiple Choice

Managers of agribusiness firms can substitute inputs in the production process to maintain output:

• A) only as long as short run profits are high
• B) both in the short run and the long run
• C) only in the long run
• D) only in the short run

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Definitions:

Increasing Opportunity

Increasing opportunity involves the growth or expansion of choices and avenues through which individuals or organizations can achieve desired goals or outcomes.

Production Possibilities Curves

A graphical representation showing the maximum combination of goods and services that can be produced within a set timeframe with available resources.

Trading Possibilities Curves

A graphical representation depicting the range of goods and services that a country can produce and trade given its resources and technology.

Substitutability

The degree to which one product or service can be replaced by another to satisfy the same need or want.