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

question 25

Multiple Choice

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces corn.The table Workers and Corn Output shows her production function.Suppose Laura acquires more land and as a result the output that can be produced by any given number of workers doubles.If the wage is $130 and the price per bushel of corn is $10, Laura should hire workers to maximize
Profits.

• A)four
• B)five
• C)six
• D)seven

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and insurance premiums.

Birthday Cakes

Specialized cakes decorated and made to celebrate a person's birthday.

Boat Tours

Guided excursions on boats or ships designed to provide passengers with leisure, entertainment, and the opportunity to explore waterways and coastal areas.

Fuel

A material that is used to produce energy, especially by combustion, to generate power or as a source of heat.