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

question 179

Multiple Choice

(Table: Workers and Corn Output) Laura is a price-taking farmer who produces corn.Assume the wage rate for workers is $130 and the price per bushel of corn is $10.The table Workers and Corn Output shows Laura's production function.Suppose Laura is employing two workers.If she adds the third worker, her profits will:

• A)increase by $79.
• B)decrease by $51.
• C)decrease by $109.
• D)increase by $80.

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