"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, the farmer employs eight workers and the marginal product of the eighth worker is 4 bushels. What would you advise this farmer to do?"

Reduce employment because the wage paid is more than the marginal revenue product.

Explanation:

If the wage rate is $30, then the marginal cost for the eight worker is $30.

The marginal revenue product of the eight worker is given by the marginal product multiplied by the price per bushel:

Since the marginal revenue product of the eight worker is less than the marginal cost (MR < MC), the farmer should reduce employment.

answer; ///the correct answer is (ftc) federal trade commission;

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o