A Wheat Farmer Sells Wheat in a Perfectly Competitive Market

question 143

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

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

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Definitions:

Ethnocentrism

The act of judging another culture solely by the values and standards of one's own culture.

Stereotyping

Assigning a wide range of generalized attributes to an individual on the basis of membership in a particular culture or social group.

Diversity

The inclusion of individuals from various backgrounds, cultures, and perspectives, enriching the workplace or community.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.