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
Miller owns a personal residence witha fair market value of $308,000 and an outstanding first mortgage of $246,400. Miller gets
marysya [2.9K]

Answer: $246,400

Explanation:

Qualified residence indebtedness refers to the mortgage that's taken to purchase or improve on one's main home.

Based on the information given above, the on the $246,400 of the first and second mortgage is treated as qualified residence indebtedness.

3 0
3 years ago
Merck & Co., Inc. is a global, research-driven pharmaceutical company that discovers, develops, manufactures, and markets a
Ugo [173]

Find the given attachment

3 0
3 years ago
What if, instead of making jet fighter experience a requirement to become an astronaut, NASA instead offered higher salaries to
Iteru [2.4K]

Answer:

In this situation, most of the NASA workforce would still be composed of austronauts with jet fighter experience because they would be lured by the higher wages offered to them.

However, the difference would lie in that there would also be some austronauts without jet figther experience, who would still try to get into NASA, despite being offered lower wages.

This is a different situation to the current one, where jet fighter experience is an requirement to become a NASA austronaut, which means that those without this type of experience are barred from entering NASA, no matter how low of a wage they would be willing to take.

8 0
3 years ago
When developing career goals, it is important to have the mindset that dramatic changes can and often do occur in the job market
Katarina [22]

Answer:

A. home health aides; computer programmers

Explanation:

When developing career goals, it is important to have the mindset that dramatic changes can and often do occur in the job market. In considering the data in your text, it can be seen that the profession of _____ experienced a dramatic increase over the past decade, while careers as ______ have experienced a substantial decrease during the same time frame.

A. home health aides; computer programmers

B. flight attendants; machinists

C. telemarketers; public relations specialists

D. financial managers; child care workers

3 0
3 years ago
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.10 a share. The company has promised to
Gre4nikov [31]

Answer:

The maximum that one should be willing to pay for this stock today is $21.38

Explanation:

The constant dividend paying company is the one whose dividend growth remains zero or unchanged. The zero growth model of the DDM is used to calculate the price or value of stock today of such a stock. This kind of stock is just like a perpetuity as it pays a fixed amount after fixed intervals of time forever.

The formula for price of such a stock or zero growth model is:

Price = Dividend / r

Price = 3.1 / 0.145  

Price = $21.379 rounded off to $21.38

6 0
4 years ago
Other questions:
  • Which of the following is NOT an example of a caught-in or caught-between hazard?
    8·2 answers
  • Balancing trade is important because if a nation imports more than it exports,
    9·1 answer
  • All of the following are disadvantages of fair value use except aparability between companies may be impacted by different fair
    6·1 answer
  • Diamond’s Corporation has an investment in 5,000 shares of Sigmond Company common stock with a cost of $218,000. These shares ar
    7·1 answer
  • The factors that affect the price elasticity of supply include: Instructions: You may select more than one answer.
    12·1 answer
  • An inmate escapes from the county prison. there is a $500 reward offered for any information leading to the capture of the inmat
    6·1 answer
  • Which of the following agencies can request that more money be printed? A. The Central Bank B. The Federal Reserve C. The Federa
    14·2 answers
  • Liam works at an IT firm. He finds that the activities carried out by his team are very complex and struggles to complete his ta
    14·1 answer
  • Partners Cantor and Dickens have capital balances in a partnership of $153000 and $241000, respectively. They agree to share pro
    5·1 answer
  • Blog Inc., has net sales of $50,000, cost of goods sold of $30,000, and selling expenses of $5,000. Its gross profit is ______.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!