(Table: Workers and Corn Output) Laura Is a Price-Taking Farmer

question 146

Multiple Choice

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces corn.Assume the wage rate for workers is $125 and the price per bushel of corn is $10.The table Workers and Corn Output shows Laura's production function.To maximize profits Laura should employ
________ workers.

• A)two
• B)three
• C)four
• D)six

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Definitions:

Opportunity Cost

The cost associated with the best foregone choice because of a decision.

Machinery

A category of physical hardware used in the production process, including tools, engines, and devices that perform various tasks.

Sweaters

Knitted garments intended to cover the torso and arms, providing warmth and fashioned from materials like wool, cotton, or synthetic fibers.

Comparative Advantage

The ability of a country, company, or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade and production.