Suppose a Farmer Is a Price Taker in Soybeans with Cost

question 9

Multiple Choice

Suppose a farmer is a price taker in soybeans with cost functions given by Suppose the farmer has to pay a 10% tax on revenue.This has the effect of

• A) flattening marginal cost.
• B) increasing marginal revenue.
• C) decreasing marginal cost.
• D) decreasing marginal revenue.

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Definitions:

Anchoring Heuristic

A cognitive bias where an individual relies too heavily on an initial piece of information to make subsequent judgments.

Extrasensory Perception

A claimed ability to gain information through means other than the known human senses.

Mental Laziness

A state where an individual avoids mentally challenging tasks, preferring comfort over cognitive effort.

Theory Perseverance Effect

The phenomenon where beliefs persist even after the evidence supporting them has been discredited or debunked.