A Wheat Farmer Sells Wheat in a Perfectly Competitive Market

question 52

Multiple Choice

A wheat farmer sells wheat in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of wheat is $2 a bushel, the wage rate is $10, the farmer employs five workers and the marginal product of the fifth worker is 10 bushels. What would you advise this farmer to do?

• A) Do nothing because the wage rate and the marginal product of the last worker hired are equal.
• B) Reduce employment because the wage paid is less than the marginal revenue product.
• C) Increase employment because the wage paid is less than the marginal revenue product.
• D) Reduce the product price so that the wage and marginal revenue product will be equal.

Interpret correlations in psychological studies and understand their implications.

Articulate differences in personality dimensions between political ideologies.

Understand the conceptualization of the Big Five traits and their cross-cultural replication issues.

Comprehend broader personality factors revealed through factor analysis, such as plasticity and stability, and their constituent Big Five traits.

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Definitions:

Sample Mean

The average value obtained from a sample, a subset of a larger population.

Population Mean

The average of a set of values in the entire population.

Margin of Error

An expression of the extent to which a sample statistic may differ from the true population parameter; it quantifies uncertainty in estimation.

Z Value

A measure in statistics that represents the number of standard deviations a data point is from the mean.