Suppose That the Production of Wheat Requires Two Inputs, Labor

question 174

Multiple Choice

Suppose that the production of wheat requires two inputs, labor and fertilizer. The price of labor is $4.50, and the price of fertilizer is $3.00. A farmer is currently employing the inputs such that the marginal product of labor is 11 and the marginal product of fertilizer is 8. If the farmer is a cost-minimizer, he should

• A)use more labor and less fertilizer.
• B)use more fertilizer and less labor.
• C)use more labor and more fertilizer.
• D)continue using the same amounts of each input.

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Definitions:

Unbalanced Braking

A condition in a vehicle's brake system where the brakes do not apply evenly across all wheels, leading to decreased control and safety.

Trailer Service Braking

The braking system specifically designed for the controlled slowing or stopping of a trailer.

Dash Valve

A control valve, typically found in air brake systems of trucks, used to apply and release brakes.

Actuate

To cause a mechanical system or device to operate.