Mr. Cobb, a corn farmer, pays his workers $8 an hour. At his current level of labor use, the marginal product of an additional hour of labor is three bushels of corn. The market price of corn is $2.75. In order to maximize his profits, Mr. Cobb should:
a. hire more labor because the marginal revenue product is below the wage.
b. not hire more labor because the marginal revenue product exceeds the wage.
c. raise the price of the corn that he sells.
d. not hire more labor because the marginal revenue product is below the wage.
e. hire more labor because the marginal revenue product exceeds the wage.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Mr. Cobb, a corn farmer, pays his workers $8 an hour. At his current level of labor use, the marginal product of an additional hour of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which information system answers routine questions about daily business transactions? A. Decision support system B. Transaction processing system C. Executive information system D. Management information system
Answers (2)
On January 2, 2019, David loans his S corporation $10,000. By the end of 2019 David's stock basis is zero and the basis in his note has been reduced to $8,000. During 2020, the company's operating income is $10,000.
Answers (1)
Why is marketing inherently risky? what kinds of risks are involved in engaging in marketing?
Answers (1)
Given what you've learned about the needs of people in developing countries, what one device or service would you create if you were an entrepreneur? be specific!
Answers (1)
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs.
Answers (1)
New Questions in Business
Which of the following is a disadvantage of the sole proprietorship form of ownership
Answers (2)
Products that are essential for life, such as water or groceries, yield more marginal utility than rare products, such as diamonds or luxury vehicles. A. True B. False.
Answers (1)
Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost.
Answers (1)
Which of the following is true of internal recruiting? a. It increases recruitment time and costs. b. It targets job applicants that do not currently work for the organization. c. It improves employee commitment and morale. d.
Answers (2)
In a perpetual average cost system: a. The average is determined by dividing the total number of units sold by the cost of units purchased during the period. b. A new weighted-average unit cost is calculated each time additional units are purchased.
Answers (1)