Ceteris Paribus,if the Corn Crop Is 15 Percent Larger This

question 37

Multiple Choice

Ceteris paribus,if the corn crop is 15 percent larger this year than it was last year,farmers will have to ________ the price of corn by ________ to sell the new crop.

• A)raise;more than 15 percent
• B)reduce;more than 15 percent
• C)reduce;less than 15 percent
• D)reduce;exactly 15 percent

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Definitions:

Operating Plan

A detailed outline of a company's goals, strategies, and projected financial actions within a specific period, usually part of the overall business plan.

Planning Assumption

An assumption about the future on which a business plan is based. The assumption must be reflected in the firm’s financial projections by calculating the specific financial statement figures it implies.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically detailed in an income statement, a balance sheet, and a statement of cash flows.

Strategic Plans

Long-term, forward-looking approaches and plans created by organizations to achieve major goals and objectives.