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Mariana [72]
3 years ago
7

A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market

price of soybeans is $6 a bushel, the wage rate is $30, the farmer employs eight workers and the marginal product of the eighth worker is 7 bushels. What would you advise this farmer to do?
a. Reduce employment because the wage paid is less than the marginal revenue product.
b. Reduce the product price so that the wage and marginal revenue product will be equal.
c. Do nothing because the wage rate and the marginal product of the last worker hired are equal.
d. Increase employment because the wage paid is less than the marginal revenue product.
Business
1 answer:
ra1l [238]3 years ago
7 0

Answer:

The correct answer is option D.

Explanation:

The market for soybeans is perfectly competitive and the market for labor is perfectly competitive as well.  

The price of soybeans is fixed at $6/bushel.  

The wage rate is $30.  

A farmer hires eight workers.  

The marginal product of the eighth worker is 7 bushels.  

The marginal revenue product of the eighth worker is

= MP\times Price

= 7\times6

=$42

We see that the wage rate is lower than the marginal revenue product. So the farmer should increase employment till the wage rate and marginal revenue product become equal.

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'The final step in recognizing the completion of production requires a company to debit Finished-Goods Inventory and credit Work-in-Process Inventory.

Production is the process of making or producing goods or products from raw materials or parts. In other words, production takes inputs and uses them to create outputs suitable for consumption, i.e. goods or products of value to the end-user or customer.

Production is the process of making, harvesting, or creating something, or the quantity of something manufactured or harvested. An example of production is the manufacture of furniture. An example of production is harvesting corn for food. An example of production is corn production.

The economist classifies the factors of production into his four categories: land, labor, capital and entrepreneurship. The first element of production is land, which includes all natural resources used to produce goods and services.

Learn more about production brainly.com/question/16755022

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4 0
2 years ago
Knowledge Check 01 Which of the following is a correct statement regarding control of over-the-counter cash receipts: multiple c
nevsk [136]

Answer: The supervisor should compare the register transactions with the cash receipts report to make sure that both are correct.

Explanation:

The cash register shows the actual amount of money that is collected by the business during the day and the cash receipts journal records the cash collected.

There is therefore a need to ensure that these two tally up as a control method. The supervisors should therefore check for this and if they find that these two are not the same, it means that there is an error somewhere that needs to be rectified.

4 0
2 years ago
When Bread and Butter Bakers got the newest batch of flour, they noticed a price increase of $1.00 per pound of flour (double th
Marrrta [24]

Answer:

If Bread and Butter Bakers meet their sales goal, their net profit per month is $11,500

Explanation:

Bread and Butter plans to use 10,000 pounds of flour per month at a price of $2.00 per pound with an additional variable expense per loaf of $1.50. They hope to sell 10,000 loaves of bread.

Total variable expense = 10,000 x $2.00 + 10,000 x $1.50 = $35,000

Total sales = 10,000 x $6.00 = $60,000

Net profit = Total sales - Total variable expense - fixed costs = $60,000 - $35,000 - $13,500 = $11,500

6 0
3 years ago
Alice is trying to save money, so she decides she’ll only buy renters insurance if and when something bad happens at her apartme
ahrayia [7]

Answer:

The correct answer is letter "D": Insurance companies will only cover losses suffered while the policy is already in place.

Explanation:

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7 0
3 years ago
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a p
Ivan

Answer:

$34,000

Explanation:

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Therefore; $50,000 - $16,000 = $34,000.

6 0
3 years ago
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