1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
The automobile industry was uniquely suited to the mass production of
insens350 [35]

Answer:

Military equipment.

Explanation:

American industry during wars required enough of industrial power to outstand other countries. To do this, the automobile industry was specifically equipped with raw materials to manufacture war vehicles such as tanks, jeeps, and trucks. Thus, this industry was uniquely suited to the mass production of 'Military Equipment'.

6 0
4 years ago
Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
docker41 [41]

Answer:

Total disbursement 892,000

Explanation:

Nomvember cash disbursement for raw materials

Nomvember purchase 860,000 x 60% = 516,000

ocober purchase 940,000 x 40% = 376,000

Total disbursement 892,000

6 0
3 years ago
A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500. Soon after the salesp
Nata [24]
Please give the statements in order to answer the question, thank you.
6 0
3 years ago
In a recent meeting at​ work, Nick was asked to deliver the sales projections for the next month. Wanting to leave some room for
Savatey [412]

Answer:

D. Over Confidence

Explanation:

Overconfidence bias occurs when an individual has more confidence than necessary given the fact. It is the tendency to hold a false and misleading assessments of our skills, intellect, or talent. It is an egoistic belief an individual expresses thinking he's better than he actually is. It's a false sense of their skill or self belief. Areas it's usually expressed is in timing optimism, like the one stated in the question, illusions of control and desirability effects.

6 0
4 years ago
Over the past year, the current assets account on the common-size balance sheet of a firm has decreased, while the current liabi
Free_Kalibri [48]

Answer:

Decreased

Explanation:

Liquidity or current ratio =  Current Assets / Current liabilities

If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.

The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.

Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).

Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.

3 0
3 years ago
Other questions:
  • 01:42:59 Scott really enjoys working with money, including making it grow. He is also a natural leader and would enjoy working w
    11·2 answers
  • Which type of financial ratio indicates whether or not the organization is capable of paying off its short-term debts without ha
    5·1 answer
  • Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of san
    8·1 answer
  • he degree of leverage concept is designed to show how changes in sales affect earnings before interest and taxes (EBIT) and earn
    7·1 answer
  • H&M does not own any of the factories that produce its clothes. Instead, it relies on some 1,900 factories and 900 suppliers
    9·1 answer
  • Most group Disability Income contracts are offered on a/an:
    8·1 answer
  • An economy produces final goods and services with a market value of $10,000 billion in a given year, but only $8,500 billion wor
    7·1 answer
  • A company provides customer support for new products and for routine maintenance of existing products. These cases have many ide
    13·1 answer
  • If you pay the balance of your credit card bill before the due date, how much do you pay?
    7·2 answers
  • the costs of carrying inventory include the costs of . (check all that apply.) multiple select question. delivering goods to cus
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!