A Farm Can Produce 10,000 Bushels of Wheat Per Year

question 197

Multiple Choice

A farm can produce 10,000 bushels of wheat per year with 5 workers and 13,000 bushels with 6 workers. The marginal product of the sixth worker for this farm is:

• A) 10,000 bushels.
• B) 3,000 bushels.
• C) 500 bushels.
• D) 23,000 bushels.

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Definitions:

Allocative Inefficiency

A situation in which resources are not distributed optimally among producers or consumers, leading to a loss in economic efficiency.

Profit-Maximizing Output

The point of production where a company reaches its maximum profit, occurring when marginal cost is equal to marginal revenue.

Marginal Cost

The bump in expenditure for manufacturing an additional unit of a product or service.

Price

The cost in financial terms anticipated, necessitated, or disbursed for something.