What Is the Reason Why Large, Short-Run Declines in Farm

question 199

Multiple Choice

What is the reason why large, short-run declines in farm prices do not significantly reduce farm production in the short run?

• A) Farmers' variable costs are high compared with their fixed costs.
• B) Farmers' fixed costs are high compared with their variable costs.
• C) Farmers' prices received are greater than prices paid for agricultural products.
• D) Farmers' prices paid are greater than prices received for agricultural products.

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Definitions:

Reflex Arc

The neural pathway that controls a reflex action, involving a sensory nerve and a motor nerve with a synapse.

Efferent Neuron

A type of neuron that carries signals away from the central nervous system towards the periphery to initiate action or movement.

Central Canal

The longitudinally extending space filled with cerebrospinal fluid that spans the full length of the spinal cord.

Gray Commissure

A narrow band of gray matter that connects the two halves of the spinal cord, located around the central canal.