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Both Ethanol and Sugar Are Made from Sugar Cane and Ethanol

question 188

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Both ethanol and sugar are made from sugar cane and ethanol can be used as a substitute for oil. As the price of oil increases, Brazilians shift sugar cane from sugar production to ethanol production, thereby:


Definitions:

MRPs

The marginal revenue product of labor refers to the increase in revenue a firm sees when adding one additional unit of labor, holding other factors constant.

Variable Resources

Factors of production such as labor, capital, and raw materials that can be adjusted in the short term to meet changes in demand or production.

Profit-Maximizing Level

The level of production at which a business achieves the highest possible profit.

Total Revenue

The total revenue obtained from selling products or services before deducting any costs.

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