Question
Asked Nov 5, 2019
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The use of "green" pesticide production practices while environmentally desirable, raises the marginal
costs of production 8 percent. What are the likely consequences of "green" production practices, ceteris
paribus?
Prices of outputs will rise and quantities of produced will fall.
b. Prices of outputs will rise and quantities of produced will rise
Prices of ouputs will fall and quantities of produced will rise.
d. Prices of outputs will fall and quantities produced will fall.
а.
с.
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The use of "green" pesticide production practices while environmentally desirable, raises the marginal costs of production 8 percent. What are the likely consequences of "green" production practices, ceteris paribus? Prices of outputs will rise and quantities of produced will fall. b. Prices of outputs will rise and quantities of produced will rise Prices of ouputs will fall and quantities of produced will rise. d. Prices of outputs will fall and quantities produced will fall. а. с.

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Expert Answer

Step 1

Demand: It refers to the quantity of a commodity that consumer is willing and able to purchase at given prices with his available income.

Supply: It refers to the quantity of a commodity that producer is willing and able to supply at given prices with available resources.

Marginal Cost: It refers to the additional cost incurred when one more unit of a good is produced.

Step 2

As the use of green pesticides practice that is environmentally desirable and raises the marginal cost of production. With the increase in the cost of the production firm reduces su...

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Price (inS) E2 P1 Р2 E1 S1 Q1 Q Quantity Produced (In Units)

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