A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $6 a bushel, the wage rate is $30, and the farmer employs eight workers. If the farmer is maximizing his profits, then the marginal product of the eighth worker is
A) 0.2 bushels.
B) 5 bushels.
C) 20 bushels.
D) indeterminate from the given information

Question

Quizplus · Accepted Answer

The Answer of A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $6 a bushel, the wage rate is $30, and the farmer employs eight workers. If the farmer is maximizing his profits, then the marginal product of the eighth worker is
A) 0.2 bushels.
B) 5 bushels.
C) 20 bushels.
D) indeterminate from the given information

A Soybean Farmer Sells Soybeans in a Perfectly Competitive Market