2. Agricultural Economics

Production Economics — Quiz

Test your understanding of production economics with 5 practice questions.

Practice Questions

Question 1

Which of the following scenarios best represents a situation where a farm is operating in Stage II of production?

Question 2

A farmer observes that adding one more unit of fertilizer increases corn yield by $5$ bushels, but the cost of that additional fertilizer is equivalent to $7$ bushels of corn. To maximize profit, what action should the farmer take regarding fertilizer application?

Question 3

If a production function is given by $Q = A L^{\alpha} K^{\beta}$, where $Q$ is output, $L$ is labor, $K$ is capital, and $A, \alpha, \beta$ are positive constants, what type of returns to scale does the firm experience if $\alpha + \beta > 1$?

Question 4

Which of the following best describes the concept of economic efficiency in agribusiness production?

Question 5

Consider a farm where the total product of labor is $100$ units when $5$ workers are employed, and $110$ units when $6$ workers are employed. What is the marginal product of the 6th worker?