A farmer uses land and labor to grow soybeans. He has the production function Q=126.2A 0.6
L 0.4
where Q is the number of soybeans in bushels, A is land in acres and L is the number of farmhands. (a) If this farmer has 100 acres of land, how many farmworkers must he employ in order to produce 10,000 bushels of soybeans? (b) What is the marginal product of labor at this level of employment? (c) Assume this farmer pays each farmworker RM 1,000 over the growing season and spends RM 2,000 on seed and fertilizer. If the price of sqybeans is RM 14.75 per bushel, what is the farmer's profit? (d) Is this farmer paying his workers the value of their marginal product? (e) If this farmer doubles the amount of land and labor, how many bushels of soybeans can he produce?