A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $1 a bushel, the wage rate is $12, the farmer employs six workers and the marginal product of the sixth worker is 10. What would you advise this farmer to do? O Increase employment because the wage paid is less than the marginal revenue product. O Reduce employment because the wage paid is greater than the marginal revenue product. O Do nothing because the wage rate and the marginal product of the last worker hired are equal. O Reduce the product price so that the wage and marginal revenue product will be equal.

A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $1 a bushel, the wage rate is $12, the farmer employs six workers and the marginal product of the sixth worker is 10. What would you advise this farmer to do? O Increase employment because the wage paid is less than the marginal revenue product. O Reduce employment because the wage paid is greater than the marginal revenue product. O Do nothing because the wage rate and the marginal product of the last worker hired are equal. O Reduce the product price so that the wage and marginal revenue product will be equal.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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