Asked by Micah Awisus on May 16, 2024
Verified
Suppose the prices of agricultural products such as corn and soybeans increase. What is the effect of these price increases on the marginal product of the 1,000th farm worker? What is the effect on the value of the marginal product of the 1,000th farm worker?
Agricultural Products
Goods derived from farming and the cultivation of the land, such as crops, livestock, and raw materials.
Marginal Product
The additional output that results from using one more unit of a particular input, keeping all other inputs constant.
- Compute the differential profit considering the expenses and incomes tied to labor and production activities.
Verified Answer
DE
Dajohn EzellMay 19, 2024
Final Answer :
The marginal product of the 1,000th farm worker is unaffected. The value of the marginal product of the 1,000th farm worker increases.
Learning Objectives
- Compute the differential profit considering the expenses and incomes tied to labor and production activities.