Jose, a Corn Farmer, Pays His Workers $8 an Hour

Multiple Choice

Jose, 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, Jose should:

A) hire more labor.
B) hire less labor.
C) leave the amount of labor hired unchanged.
D) This question cannot be answered without knowing the average product of labor.