Increased Productivity in the Agricultural Sector Is Not Always a Benefit

question 147

Multiple Choice

Increased productivity in the agricultural sector is not always a benefit to farmers because it is accompanied by

• A)lower prices and if demand is inelastic,lower prices mean lower revenues.
• B)higher prices and if demand is elastic,higher prices mean lower revenues.
• C)lower prices and if demand is elastic,lower prices mean lower revenues.
• D)higher prices and if demand is inelastic,higher prices mean lower revenues.

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Definitions:

Average Variable Cost

It is calculated by dividing total variable costs by the total output produced, representing the variable cost per unit of output.

Variable Cost

Costs that change with the level of production or business activity, such as materials and labor.

Quantity of Output

Refers to the total amount of goods or services produced by a firm or an economy within a specific time period.

Total Cost

The overall expenditure associated with the creation of goods or provision of services, comprising both certain and variable costs.