Suppose That the Production of Wheat Requires Two Inputs, Labor

question 108

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.

---

Definitions:

Values

Fundamental beliefs or principles that guide an individual's or society's behaviors, decisions, and understanding of what is important.

Biosphere

A worldwide ecosystem that encompasses all organisms and their interactions, along with their connections to the earth's lithosphere, hydrosphere, and atmosphere.

Minimal Government Interference

Refers to a political and economic principle advocating for reduced government involvement in economic decisions and private enterprises.

Values

The principles or standards of behavior deemed important in life or society.