There Are 50 Apple Trees in an Orchard

question 266

Multiple Choice

There are 50 apple trees in an orchard. Each tree produces 100 lbs of apples. For each additional tree planted in the orchard, the output per tree drops by 1 lb. How many trees should be added to the existing orchard in order to maximize the total output of trees?

• A)15
• B)10
• C)25
• D)0
• E)5
• F)20
• G)40
• H)None of these

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Definitions:

Technological Change

The process of invention, innovation, and diffusion of technology or processes which significantly alters the way goods or services are produced.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process over a defined period of time.

American Economy

The economic system of the United States, characterized by a mix of private and public enterprises and a relatively high level of technological innovation and productivity.

Savings Rate

The Savings Rate is a measure indicating the proportion of income that households save rather than spend on consumption.