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

question 278

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 $130 and the price per kilogram of corn is $10.Suppose that Laura acquires more land and as a result the output that can be produced by any given number of workers doubles.Laura should hire _____ workers to maximize profits.

• A) 4
• B) 5
• C) 6
• D) 7

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Definitions:

Game Theory

The study of mathematical models of strategic interaction among rational decision-makers.

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The organization and characteristics of a market, determining the level of competition and pricing power, such as monopolistic, oligopolistic, and competitive markets.

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A strategy in game theory and negotiations where a participant replicates an opponent's actions, commonly used to enforce cooperative behavior.