A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. What is the farmer's profit-maximizing output?
A. 20
B. 40
C. 37
D. 32
Answer: C
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How does specialization affect employment patterns?
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Firms that are most likely to buy marketable pollution rights are those that produce the most pollution per unit of output produced
Indicate whether the statement is true or false