Currently, a Farmer Can Either Grow 40 Bushels of Wheat

question 4

Multiple Choice

Currently, a farmer can either grow 40 bushels of wheat or 120 bushels of corn per acre. If he were able to trade 70 bushels of corn for 30 bushels of wheat, would he be better off or worse off?

• A) worse off, because his opportunity cost of wheat would increase from 2.33 bushels of corn to 3 bushels of corn
• B) better off, because his opportunity cost of wheat would fall from 80 bushels to 50 bushels
• C) better off, because his opportunity cost of wheat would fall from 3 bushels of corn to 2.33 bushels
• D) worse off, because his opportunity cost of wheat would increase from 50 bushels of corn to 80 bushels of corn

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Definitions:

Organic

Often used to describe farming practices that avoid the use of synthetic fertilizers and pesticides, or organizations and systems that are flexible and adapt to changes naturally.

Mechanistic

Characterizes an organizational structure that is highly bureaucratic, with strict rules, procedures, and a clear hierarchy, focusing on efficiency and predictability.

Flexible

Capable of adapting to changes and new conditions in a thoughtful and efficient manner.

Span of Control

The number of individuals that a manager or supervisor is directly responsible for overseeing in an organizational structure.