A Wheat Farmer Sells Wheat in a Perfectly Competitive Market

question 52

Multiple Choice

A wheat farmer sells wheat in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of wheat is $2 a bushel, the wage rate is $10, the farmer employs five workers and the marginal product of the fifth worker is 10 bushels. What would you advise this farmer to do?

• A) Do nothing because the wage rate and the marginal product of the last worker hired are equal.
• B) Reduce employment because the wage paid is less than the marginal revenue product.
• C) Increase employment because the wage paid is less than the marginal revenue product.
• D) Reduce the product price so that the wage and marginal revenue product will be equal.

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Definitions:

Surgical Asepsis

Techniques used to maintain a sterile environment and prevent infection during surgical procedures.

Medical Asepsis

Practices aimed at reducing the number and spread of pathogens or disease-causing microorganisms.

Sterile Drape

A sterile cloth used to cover patients and their surroundings during a medical procedure to maintain a clean and aseptic environment.

Soaking Solution

A liquid solution used for cleansing, disinfecting, or soaking items, often for medical or cleaning purposes.