A Soybean Farmer Sells Soybeans in a Perfectly Competitive Market

question 33

Multiple Choice

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, and the farmer employs eight workers. If the farmer is maximizing his profits, then the marginal product of the eighth worker is

• A) 0.2 bushels.
• B) 5 bushels.
• C) 20 bushels.
• D) indeterminate from the given information

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applicable to income, capital gain, or other taxable bases.

IFRS 8

An International Financial Reporting Standard that requires companies to report financial information by business segment to provide a clearer understanding of a company’s performance.

Operating Segment

A component of an enterprise that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the enterprise's chief operating decision maker.

Quantitative Threshold

A specified numerical limit or benchmark that must be met or exceeded, often used in contexts like financial regulation or performance measurement.