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Happy Cows Is a Dairy Farm That Is Currently Earning

Question 67

Multiple Choice

Happy Cows is a dairy farm that is currently earning $20,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm; however, the managerial diseconomies from adding the second farm cause Happy Cows current farm's economic profit to fall to $15,000. It is economically sound for Happy Cows to add the second farm if _______ .


A) the second farm's economic profit exceeds $5,000
B) the second farm's economic profit is at least $4,800
C) the second farm's economic profit is less than $5,000
D) the second farm's economic profit is at least $4,000

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