Use the following to answer questions : $$\begin{array}{l}
\text { Table: Workers and Corn Output }\
\begin{array} { l c }
\hline \begin{array} { l }
\text { Numbers } \
\text { of Workers }
\end{array} & \begin{array} { c }
\text { Output } \
\text { of Corn } \
\text { (units of corn) }
\end{array} \
\hline 0 & 0 \
1 & 30 \
2 & 58 \
3 & 79 \
4 & 94 \
5 & 104 \
6 & 108 \
7 & 110 \
\hline
\end{array}
\end{array}$$
-(Table: Workers and Corn Output)Use Table: Workers and Corn Output.Laura is a price-taking farmer who produces corn.Assume that the wage rate for workers is $125 and the price per kilogram of corn is $10.To maximize profits,Laura should employ _____ workers.
A) 2
B) 3
C) 4
D) 6

Question

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Workers and Corn Output }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Numbers } \
\text { of Workers }
\end{array} & \begin{array} { c } 
\text { Output } \
\text { of Corn } \
\text { (units of corn) }
\end{array} \
\hline 0 & 0 \
1 & 30 \
2 & 58 \
3 & 79 \
4 & 94 \
5 & 104 \
6 & 108 \
7 & 110 \
\hline
\end{array}
\end{array}$$
-(Table: Workers and Corn Output)Use Table: Workers and Corn Output.Laura is a price-taking farmer who produces corn.Assume that the wage rate for workers is $125 and the price per kilogram of corn is $10.To maximize profits,Laura should employ _____ workers.
A) 2
B) 3
C) 4
D) 6

Quizplus · Accepted Answer

To maximize profits, Laura should employ workers up to the point where the marginal cost of labor equals the marginal revenue product of labor. The marginal product of the 4th worker is 15 units (94-79), and the revenue from these 15 units is $150 (15*$10), which is greater than the wage rate of $125. The 5th worker adds only 10 units, generating $100, which is less than the wage rate. Thus, 4 workers maximize profit.

Use the Following to Answer Questions -(Table: Workers and Corn Output)Use Table: Workers and Corn Output