A Farmer Who Has Fixed Amounts of Land and Capital

question 137

Multiple Choice

A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired, 32 when two workers are hired, 37 when three are hired, and 40 when four are hired. The farmer's product sells for $3 per unit, and the wage rate is $13 per worker. How many workers should the farmer hire?

• A)$1
• B)$2
• C)$4
• D)$3

Understand how a person’s Holland code or type can predict their engagement in counseling and career decision-making.

Know how to identify Holland codes based on a person's job preferences and self-concept.

Identify assessments that utilize Holland's codes and their purpose in career counseling.

Understand the concept and classification of costs in a manufacturing setting.

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Definitions:

Arbitrage

The simultaneous buying and selling of the same commodity or security in two different markets at different prices, thus pocketing a risk-free return.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Common Share Equity

The amount of money that would be returned to shareholders if a company's assets were liquidated and all its debts repaid, representing ownership in a corporation.

Dividend Income

Income received from owning shares in a company, typically distributed from the company's profits.