Using benefit-cost analysis,if it costs a farmer $150/ha to plant soybeans,he or she should definitely plant the crop if projected benefits are
A)$75/ha.
B)$150/ha.
C)$190/ha.
D)$145/ha.

Question

Quizplus · Accepted Answer

Benefit-cost analysis involves comparing the expected benefits of an action to the expected costs. In this scenario, if the cost to the farmer to plant soybeans is $150/ha, the farmer should plant the crop if the projected benefits are greater than $150/ha.

Option A, with projected benefits of $75/ha, would not be sufficient to cover the cost of planting and therefore would not be a good choice.

Option B, with projected benefits of $150/ha, would only break even with the cost of planting, so it would not be the best choice either.

Option D, with projected benefits of $145/ha, would not cover the full cost of planting and therefore would not be the best choice.

Option C, with projected benefits of $190/ha, would provide a net benefit of $40/ha ($190 - $150), making it the best choice for the farmer.

Using Benefit-Cost Analysis,if It Costs a Farmer $150/ha to Plant