A Wheat Farmer Sells Wheat in a Perfectly Competitive Market

question 143

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, and the farmer employs five workers. If the farmer is maximizing his profits, then the marginal product of the fifth worker is

• A) 0.2 bushels.
• B) 5 bushels.
• C) 20 bushels.
• D) indeterminate from the given information

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Definitions:

Interpersonal Communication

The exchange of information, feelings, and meanings between two or more people through verbal and/or non-verbal methods.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Human Relations

The study and practice of creating harmonious and effective interactions in professional and personal settings.

Working Groups

Groups formed to achieve a specific goal or task, usually characterized by a focused and collaborative approach.