Scenario 12-6 Tony Is a Wheat Farmer,but He Also Spends Part of Part

question 72

Multiple Choice

Scenario 12-6
Tony is a wheat farmer,but he also spends part of his day teaching guitar lessons.Due to the popularity of his local country western band,Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business.Farmer Tony charges $25 an hour for his guitar lessons.One spring day,he spends 10 hours in his fields planting $130 worth of seeds on his farm.He expects that the seeds he planted will yield $300 worth of wheat.
-Refer to Scenario 12-6.Tony's accounting profit equals

• A) $-80.
• B) $130.
• C) $170.
• D) $260.

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Definitions:

Marginal Revenue Product

The increased earnings obtained from utilizing an extra unit of an element, such as labor or capital.

Input

refers to the resources, materials, or labor used in the production of goods and services.

Units

Basic quantities or measurements used to express variables in various contexts, such as items, people, or currency.

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing and able to hire at different wage levels, typically downward sloping.