A Soybean Farmer Sells Soybeans in a Perfectly Competitive Market

question 125

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, 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) 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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Large States

States with significant populations or geographical areas, often having considerable influence in national politics and elections.

Proposing Amendments

The process by which changes or additions are made to the Constitution of the United States, typically requiring approval by both Congress and the states.

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Antifederalists' Impact

The influence of Antifederalists in early American political thought, emphasizing the need for a Bill of Rights and advocating for a balance between federal and state powers.