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 45 bushels of soybeans is:
A) $100.
B) $200.
C) $350.
D) $4,500.

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 45 bushels of soybeans is:
A) $100. 
B) $200. 
C) $350. 
D) $4,500.

Quizplus · Accepted Answer

The total cost includes the fixed cost of $150 and the variable cost of labor. If 2 workers produce 45 bushels, the labor cost is 2 workers * $100 = $200. Total cost = $150 + $200 = $350.

Use the Following to Answer Questions