Scenario 13-12
If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.
-Refer to Scenario 13-12.Farmer Brown's production function exhibits

Question

Quizplus · Accepted Answer

The marginal product of the seeds decreases as more bags are planted, indicating a diminishing marginal product. Farmer Brown should continue to plant seeds as long as the marginal product is positive and the revenue generated from the harvest is greater than the cost of the seeds.

Scenario 13-12 If Farmer Brown Plants No Seeds on His Farm, He