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-(Table: Production Function for Soybeans) Look at the table Production Function for Soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day. The total cost of producing 25 bushels of soybeans is:
A) $50.
B) $100.
C) $150.
D) $250.

Question

Use the following to answer questions: 
-(Table: Production Function for Soybeans) Look at the table Production Function for Soybeans. Assume that the fixed input, capital, is 10 acres of land and a tractor, which have a combined cost of $150 per day. The cost of labor is $100 per worker per day. The total cost of producing 25 bushels of soybeans is:
A) $50. 
B) $100. 
C) $150. 
D) $250.

Quizplus · Accepted Answer

The total cost includes the fixed cost of $150 and the variable cost of labor. To produce 25 bushels, at least one worker is needed, costing $100. Therefore, the total cost is $150 + $100 = $250.

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