Max, a corn farmer, must choose whether or not to add fertilizer to his crops. if he adds 1 pound of fertilizer per acre, at harvest the value of his corn crop will increase from $75 to $100 per acre. using marginal analysis, max should add fertilizer only if the cost of fertilizer is

$25 per pound.

Explanation:

A marginal analysis is the examination of the costs and benefits of a marginal change in the production of goods.

A marginal is the amount added to the total by an additional unit of an activity or resource.

Economic decision rules are mostly defined in terms of marginals.

In simple words, is for getting the most value for the resources used.

In this case, if without the fertilizer the value of the harvest is $75, and with fertilizer the value is $100, so $100 - $75 = $25.

$25 is the value difference that Max can do, so the cost of the fertilizer muy be below $25 to obtain a benefit.

a naked warrant, also known as a covered warrant, is a derivative that allows the holder to buy or sell a security, such as a bond or share. unlike a normal warrant, it is not attached to a newly issued bond or preferred stock.

unsecured bonds: they are not secured by a specific asset, but rather by "the full faith and credit" of the issuer. in other words, the investor has the issuer's promise to repay but has no claim on specific collateral. debt, such as unsecured bond debt, is said to be “subordinated,” or junior, to secured debt.

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