Use the Following to Answer Questions -(Table: Workers and Corn Output)Use Table: Workers and Corn Output

question 297

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Workers and Corn Output }\\\begin{array} { l c } \hline \begin{array} { l } \text { Numbers } \\\text { of Workers }\end{array} & \begin{array} { c } \text { Output } \\\text { of Corn } \\\text { (units of corn) }\end{array} \\\hline 0 & 0 \\1 & 30 \\2 & 58 \\3 & 79 \\4 & 94 \\5 & 104 \\6 & 108 \\7 & 110 \\\hline\end{array}\end{array}$$
-(Table: Workers and Corn Output) Use Table: Workers and Corn Output.Laura is a price-taking farmer who produces corn.Assume that the wage rate for workers is $125 and the price per kilogram of corn is $10.Suppose that Laura is employing 7 workers.If she reduces employment to 6 workers,her profits will:

• A) increase by $20.
• B) decrease by $970.
• C) increase by $105.
• D) increase by $90.

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