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(Table: Workers and Corn Output) Laura Is a Price-Taking Farmer

Question 198

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(Table: Workers and Corn Output) Laura is a price-taking farmer who produces corn.Assume the wage rate for workers is $125 and the price per bushel of corn is $10.The table Workers and
Corn Output shows Laura's production function.Suppose Laura is employing seven workers.If she lets the seventh worker go and reduces employment to six workers, her profits will:


A) increase by $20.
B) decrease by $970.
C) increase by $105.
D) increase by $90.

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