If Soybean Farmers Know That the Demand for Soybeans Is

question 168

Multiple Choice

If soybean farmers know that the demand for soybeans is inelastic,and they want to increase their total revenue,what should they all do

• A)They should plant more soybeans so that they would be able to sell more each year.
• B)They should increase spending on fertilizer in an attempt to produce more on the acres they farm.
• C)They should reduce the number of acres they plant in soybeans.
• D)They should use better machinery.

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Definitions:

Growth Rate

The rate at which a company's earnings or capital is expected to grow, usually annually, influencing investment decisions.

Dividends

Monies disbursed by a business to its owners, often coming from the profit the company makes.

Costs

The monetary valuation of effort, material, resources, time, and opportunity foregone in production and delivery of a good or service.

Retention Ratio

The proportion of a company's net income that is retained rather than paid out as dividends, indicating reinvestment back into the company.