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 70 bushels of soybeans is:
A) $250.
B) $400.
C) $550.
D) $1,024.

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 70 bushels of soybeans is:
A) $250. 
B) $400. 
C) $550. 
D) $1,024.

Quizplus · Accepted Answer

The total cost includes the fixed cost of $150 and the variable cost of labor. To produce 70 bushels, the table must indicate the number of workers needed. Assuming 4 workers are needed, the labor cost is 4 workers x $100 = $400. Total cost = $150 + $400 = $550.

Use the Following to Answer Questions