A farmer has developed a new type of fertilizer. This new fertilizer costs 20 percent more to produce than the old fertilizer but has better results: The same land now produces 25 percent more crops each year. Which statement best describes one way the farm will be affected by using this new fertilizer? • A. The farm's opportunity cost for each piece of land will increase. • B. The farm's opportunity cost for each piece of land will decrease. • C. The farm's marginal benefits for each piece of land will increase. • D. The farm's marginal benefits for each piece of land will decrease.

Respuesta :

Answer:

C. The farm's marginal benefits for each piece of land will increase.

Using the new fertilizer results in 25 percent more crops, indicating an increase in productivity. This corresponds to an increase in marginal benefits for each piece of land.